Rental Property Investor · Nantucket, MA · Member since 2021 · 52 posts · 18 votes
I am in the process of selling one of my homes. Come to find out that there is no recording of the deed with the county when I refinanced it in 2011. What exactly does that mean? What steps should I take next? The closing happened today but the attorney is holding the funds until I figure this out. Is there any way I can benefit from this?
Rental Property Investor · Nantucket, MA · Member since 2021 · 52 posts · 18 votes
5y
I just read an Email from the Attorney stating that it looks as if the property was paid off in 2011. There are two deeds of trust recorded, but both are showing that they were cancelled and no longer apply to the property. We refinanced again in May of last year, which would explain why the 2011 recording would show as cancelled, but without that recording from 2020, could I prove that I own the property free and clear and receive the funds from the sale and not be liable to pay the lender?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
5y
Not quite….assuming your refi mtg/trust deed wasn’t recorded, that just means there is no “notice to the world” that there is a loan and mortgage. The mortgage/trust is just the Collateral Security for the Note. You signed a Note which is the actual indebtedness, so yes you owe the money. Just get the payoff, pay it, and move on.
Note, depending on how your attorney is searching, it could be recorded and just being missed. He should be searching by name And by legal description. Occasionally, a recording misspells the borrower name, so if searching by name only, the recording is missed, though certainly still valid.
Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
5y
You owe the money, WHY would you want to "Benefit from this"??
There was obviously a mistake. Mistakes happen. Find the mortgage or deed of trust that was recorded. YOU should have a copy of it. Actually if you are closing with an attorney, he should be calling the lender to get a payoff. YOU have the lender's information, give it to the attorney so that they can get a payoff sent to the attorney.