Posted by pat/WA on 6/12/12 12:19pm
Msg #423247

Deed

I know someone who needs some help. She has paid off her mortgage but cannot get the deed recorded in her name. She went to the county courthouse and they claimed they did not have it and sent her to the tax assessors office. The tax assessor gave her a form stating there were no liens against her property. She went to Bank of America and they said they couldn't help her.
Where should she apply to get the deed to her propertry?

Reply by Lee/AR on 6/12/12 12:24pm
Msg #423249

The "Deed" is already in her name and recorded...that's how she got a mortgage--by owning the collateral.

What she is really looking for is a 'Satisfaction of Mortgage'. However, if the tax assessor has already stated there are no liens...she doesn't have a problem because 'somebody' filed that Satisfaction.

Now...if she's trying to makes some name changes...she needs an attorney.

Reply by pat/WA on 6/12/12 12:34pm
Msg #423251

Thanks. She knows she doesn't have a problem. But she still wants to have the deed to her property showing her name.
That doesn't seem unreasonable.

Reply by VT_Syrup on 6/12/12 12:40pm
Msg #423253

There are two systems used for real estate loans in the US. One is the mortgage. The borrower always has a deed from the seller to the buyer/borrower. In addition, there is a mortgage from the borrower to the lender. When the loan is paid, the lender records a satisfaction of mortgage in the land records, which in effect cancels the mortgage.

The other system is the deed of trust. The borrower conveys the property to the trustee, who is named in the deed of trust. When the borrower pays off the loan the trustee is supposed to re-convey the property to the borrower. So is Bank of America the lender or the trustee?

Reply by Linda_H/FL on 6/12/12 12:50pm
Msg #423256

Re: Deed...heh..good point..forgot they're a DOT state n/m

Reply by Jessica Ward on 6/12/12 1:16pm
Msg #423261

Did she pay off the property recently?

In King County, WA it takes about six months to get the satisfied lein (deed of trust) back from the county, sometimes more.

Reply by pat/WA on 6/12/12 2:37pm
Msg #423280

Re: Did she pay off the property recently?

Jessica
They are in Thurston County. Do you know how long it takes in Thurston County?

Reply by Linda_H/FL on 6/12/12 12:37pm
Msg #423252

Unless it's like one of those cockamamie things we have

down here..

Years ago - they used to execute an "Agreement for Deed" - sign the agreement, it's recorded, make payments and once entire amount is paid in full a satisfaction is recorded and a Deed is issued vesting title in payors....IF all proper procedure were followed that's what should have happened. But many times no deed was ever filed as it was assumed the satisfaction was sufficient - which it was not. I have one such file in my office now...what a mess - talk about clouded title!!

Normally, Pat, when someone buys property they're issued a deed from Seller to Buyer immediately at closing (or after close of escrow in escrow states), which is recorded - that's what puts their name on title. I feel there's a lot of information missing here leading to too many questions as there are too many scenarios to consider. My best advice is your friend should go to a real estate attorney and have him sort through the mess starting with a full title search.

JMO.

Reply by MW/VA on 6/12/12 2:08pm
Msg #423277

Best advice, Linda. :-) n/m

Reply by MW/VA on 6/12/12 1:30pm
Msg #423266

IMO it isn't the same as with a vehicle--you pay if off & you get the title. The owner always holds the deed to the property. The Deed of Trust becomes a lien on the property for the amt. of the loan. She should receive a Deed of Satisfaction for her loan payoff, but those take a while. Apparently, she's already be able to find out that there are no liens against the property, so she owns it free & clear.

Reply by Doris_CO on 6/12/12 3:20pm
Msg #423288

You friend won't get a new deed after her mortgage loan is paid off. What she should receive is the old original DOT with something stamped or written on the first page that the lien is paid in full and released. If the lender released the lien electronically, then there might not be a copy of the old deed sent to the recorders office to be released, so there wouldn't be a paper copy of the DOT to return to your friend.

Reply by LKT/CA on 6/12/12 9:39pm
Msg #423355

If your friend had CA property (hypothetically speaking), and she paid off her mortgage, a "Deed of Reconveyance" would have been recorded by the trustee which declares the debt has been satisfied. In CA, there are three parties to a DOT: the grantor or the trustor (borrower), the beneficiary (the lender, and the trustee (an independent third party). The trustee's role is to take care of releasing the property from the DOT when the loan is paid off or handle the foreclosure if the borrower defaults. This is how it works in CA....don't know about other states.

A few years ago, there was a scam that was widespread - all over the country - where defaulting borrowers rented their homes to unsuspecting people. They collected the monies for months and months, not giving any of it to the bank. The renters had no idea they were renting a home in the process of foreclosure. At some point the renters were put out of the home without warning by the sheriff as the foreclosed property was ready now up for auction. I knew people who were victims of that scam. It was HORRIBLE because they were only given 24 hours to get out. I happened to be taking an Escrow class at that time and asked the instructor how a person could avoid being a victim of that as I knew my brother was moving into a nice home (renting).

She said to go to the county recorder in the county where the property is located and if a "Notice of Default" was recorded, then that's the red flag that the home is in the early stages of foreclosure. When I did the research, a Deed of Reconveyance was on file which told me the house my brother was renting was paid off and he was more than safe from that scam.