Posted by 101livescan on 12/18/10 12:19am
Msg #365397

TRUE STORY ABOUT AN OVERSIGNED DOT

Some deeds of trust have a place at the bottom of a standard form that is for RECONVEYANCE of the Deed at Payoff. Well, you're going to love this.

The notary had the borrower sign the reconveyance portion, and notarized it at the time the loan was made, and it was subsequently recorded! and now it's in dispute. Borrower claims he has a reconveyed deed and the property loan was paid in full. Amazing.

There are some notaries who think it's a good idea for the borrower to sign wherever possible. This one was overkill.

Reply by CopperheadVA on 12/18/10 5:48am
Msg #365401

Sounds like the title company and lender should have caught that when the docs came back and should have required a re-sign on that doc. But no excuses for that notary - probably was a $60 edocs notary.

Reply by ReneeK_MI on 12/18/10 5:52am
Msg #365402

Where did you hear of this?

Considering the requirements & processes for reconveyance, the story just doesn't sound like there's any valid 'dispute'. I suppose anyone can dispute anything - or even file suit for anything - but since this person's obviously the mortgagor and not the mtgee, trustee or beneficiary ...just not that simple.

Think about it - anyone can obtain a copy off public record of their DOT (or, already HAVE a copy from their copy pkg). If a valid reconveyance were that simple, ANYONE could sign off, have the signature notarized (not for the notary to determine authority), have it recorded (not for the recording clerk to determine, either). Done? Viola', property free & clear?

Reply by Alz on 12/18/10 9:32am
Msg #365415

Sounds like basic reading skills were not used. n/m

Reply by LKT/CA on 12/18/10 11:17am
Msg #365426

Once the borrower (Trustor) pays off the loan, the lender (Beneficiary) executes a request for reconveyance, which is given to the borrower along with the original note and deed of trust.

The borrower (Trustor) gives these documents to the Trustee (escrow/title who holds bare/naked title) and the Trustee then issues the deed of reconveyance, which then gets recorded.

That's the way it works in CA. Borrower cannot just sign that line on the back of the DOT and reconvey the property to himself/herself. The Trustee does that only AFTER a request from the LENDER. There's no dispute...just a joke on the borrower (LOL)

Reply by kathy/ca on 12/18/10 2:28pm
Msg #365440

Ditto what LKT said! n/m

Reply by Grammyzoom on 12/19/10 6:27am
Msg #365501

I actually had an escrow one time where the Seller provided

me with the lienholder information. The title company did the usual search and when I got the preliminary report there was no lien showing on the property. After some amount of investigation it turned out that the day the TD was recorded some idiot also recorded the Deed of Reconveyance.

There was no point in the Seller trying to get out of paying of the loan though because there are laws (at least in CA) that cover "unlawful enrichment".

So the Recon was removed, lienholder paid off and another Recon recorded.