Happy Independence Day!
YOU HAVE QUESTIONS, WE HAVE ANSWERS!
VIVA ESCROW Q & A SEGMENT
(Real questions sent to us – verbatim!)
QUESTION:
I read your article online about deeds of trusts and notes. I am looking to close the loop on a deed of trust with a private investor that has been paid. How do I close this arrangement? Is there a document that I should fill out between parties to document settlement?
ANSWER:
I believe you are asking about getting a Full Reconveyance from the private lender that you have paid off?
The private lender should return to you the following:
Original Note – marked and signed by Lender “paid in full” across the Note
Original Deed of Trust – signed on the back pages where it states “Request for Full Reconveyance
Once you have received the original documents you should then contact the named “Trustee” showing on the documents, the third party whose function is to issue the Full Reconveyance. There will be a cost. You might want to ask if they will help you record the Full Reconveyance once it is issued. If they won’t, then ask them to mail the original Full Reconveyance to you and you will need to record this document at the County Recorder’s office where the property is located.
EDUCATIONAL MOMENT:
I was very happy to receive this question. It showed that someone out there realized that there is a final step before considering a real estate loan “Paid In Full”. Too many people don’t realize that if (1) a loan has been recorded on the property, then (2) a reconveyance has to be recorded to show it paid. The loan does not automatically fall off just because you made the last payment. Institutional lenders know, but in a private lender situation, the Borrower needs to be proactive, obtain the original loan documents, the Reconveyance, and make sure it is recorded correctly. I wrote about this reconveyance issue and I am glad someone read it online!
Another important thing about paying off a private loan, or any loan, really – keep all the payoff paperwork in a safe place. Don’t throw them away in the event it is questioned in the future and your proof of payoff is needed. I have an Escrow Tip about just this recommendation in my monthly You/tube offering linked below.
**********
~ Video of the Month ~
The price of eggs has had a rollercoaster of a year.
Here’s a video on how eggs make it to our table
because we should all know all the hoops that egg had to jump through to land on your plate
**********
~ Quote of the Month ~
“The present is all we have to live in. Or to lose.”
~ Marcus Aurelius, Roman Emperor 161 – 180 AD ~
**********
My YouTube Offering for the Month
**********
You Have Questions? We Have Answers!
Juliana Tu, CSEO, CEO, CBSS, CEI, SASIP
“Escrow is my FOREMOST language!”
Advance Disclosure:
The opinions expressed in this blog are solely the author’s.
Your comments and viewpoints are always welcome.
Info @ VivaEscrow.com