SJ: I agree in theory. I would agree to sign, since this is a simple clerical error. However, how would they release a lien that was never valid? If it wasn't recorded, it didn't exist in the county records.
My advice, check those records at the courthouse. If there's a DOT on record for your property, tell the lender to go pound sand, or as another poster likes to put it - tell them to bite rocks, you ain't signing squat until you see a RECORDED satisfaction piece.
I am not an attorney. I don't have an attorney. I don't even know an attorney. My advice should be given the same consideration as that of a 5 year old. In fact, you might just give that 5 year old the benefit of the doubt