paid off house-no deed ?

[Mary Jay]

Hey guys,

One of my little rentals is paid off and I called the bank today and asked them for deed or title, they said they do not give that.

They said that I could go to courthouse where I live (the paid off rental is in a different state) and ask them to give me a paper that the house has no liens. That made no sense...

How does it work? When you paid off a house, did the bank sent you a deed? Or did the bank just sent you a lien release?

Did you have to record that lien release at accessors office?

What are the steps?

Thank you!

[Scott Gifford]

The bank just sends a release, called a full reconveyance, and should record it as well. 

Having a loan (at least in a deed of trust state, I'm not familiar with other systems) does not mean the bank holds your deed, title, or anything like that. When you buy, financing or not, the deed is recorded in your name. The bank then records a deed of trust assigning it to a trustee who has the power of sale if you don't pay. This is then released when the loan is paid. While the language of the deed of trust and full reconveyance might suggest a transfer, it isn't really one in any practical sense unless you don't pay. 

If you want a copy of the deed from when you bought it, you can get that from your county recorder. Often they are available online if the transaction was in the last couple decades.