Documents to prove mortgage paid off (i.e., no liens)?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.

Documents to prove mortgage paid off (i.e., no liens)?

Postby TacklingFinances » Sat Sep 18, 2010 7:57 pm

When someone pays off a mortgage, what documents should one have to prove beyond a doubt that a mortgage has been paid off and there are no liens on the property?

I paid off my mortgage and received the following:

1. A letter from the bank referencing my loan number saying it was paid off. This letter was not signed or anything. I think it is just an FYI.
2. A letter titled "Substitution of Trustee and Full Re-conveyance". In the upper right corner is a sticker from the County Recorder with a book and page number, and a date and time. It also has on this sticker "Ttl Pd". Also on this letter are some notarized legalize that from what I can make of it transfers what was the current beneficiary (a mortgage registration system) to a new trustee (a Trust Recording company).

Is that it? Do I need anything else?

Thank you.
TacklingFinances
 

Postby sscritic » Sat Sep 18, 2010 8:38 pm

In CA we have deeds of trust. A trustee "holds" your property (not you, not the bank) until you pay the bank off. When you pay off the bank, the bank tells the trustee, and the trustee reconveys the property to you. If you sell the property, the bank tells the trustee that it has been paid, and the trustee reconveys the property to whomever is entitled.

My document it titled "Full Reconveyance."
XXX, as present Trustee for the Deed of Trust executed by SS Critic as Trustor, dated yyy and recorded on zzz as instrument No. ... WWW County, California, having been requested in writing, by the holder of the obligations secured by said Deed of Trust, does hereby reconvey to the person or persons legally entitled thereto, without warranty, all the estate, title and interest acquired by Trustee under said Deed of Trust.

This was actually a sale, but you get the same thing when you pay off a mortgage.

This doesn't mean that you don't have a lien on your house from your kitchen remodel.
sscritic
 
Posts: 21279
Joined: 6 Sep 2007

Re: Documents to prove mortgage paid off (i.e., no liens)?

Postby sscritic » Sat Sep 18, 2010 9:56 pm

TacklingFinances wrote:Also on this letter are some notarized legalize that from what I can make of it transfers what was the current beneficiary (a mortgage registration system) to a new trustee (a Trust Recording company).

Is the entity MERS (Mortgage Electronic Registration Systems, Inc.)? http://www.mersinc.org/

MERS is at the heart of many arguments about foreclosure, particularly when the mortgage has been sold as part of a MBS. [no politics or economics or rants here please]

I understand that MERS would reconvey your title after you pay off your loan, but why to this new trustee and not you? The answer will be particular to the real estate law in your state.
sscritic
 
Posts: 21279
Joined: 6 Sep 2007

Here is what the document says...

Postby TacklingFinances » Sun Sep 19, 2010 1:59 pm

Thank you for the replies. I am in CA too. And it was MERS.

Here is a snippet of what the document says:

WHEREAS, (Our names here) was the original Trustor under that certain Deed of Trust dated (date here) and recorded (date we picked up the keys here) as Instrumentor or Document No., in Book (Book number here) , Page (Page # Here), of Official Records of the County of (County Here), State of California.

WHEREAS, the undersigned, Mortgage Electronic Registration Systems, Inc as the present Beneficiary under said Deed of Trust hereby substitutes a new Trustee, ReconTrust Company, N.A. under said Deed of Trust, and ReconTrust Company, N.A. as Trustee under said Deed of Trust does hereby reconvey, without warranty, to the person or persons legally entitled thereto, the estate now held by Trustee under said Deed of Trust.

Dated (Date 3 days after we paid of loan)

New Trustee: ReconTrust Company, N.A.
Current Beneficiary: Mortgage Electronic Registration Systems, Inc.


Then of course it is notarized. And in the upper corner is a sticker from the County Recorder.
TacklingFinances
 

Postby chaz » Sun Sep 19, 2010 2:30 pm

TacklingFinances, it sounds like you now have a clear title.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
chaz
 
Posts: 12974
Joined: 27 Feb 2007

Postby LynnC » Tue Oct 26, 2010 10:46 am

Chaz,

How so? I didn't find anything with that link? Am I not looking in the right place?

LynnC
LynnC
 
Posts: 742
Joined: 1 Mar 2007
Location: California

Postby chaz » Tue Oct 26, 2010 11:25 am

LynnC wrote:Chaz,

How so? I didn't find anything with that link? Am I not looking in the right place?

LynnC


LynnC, I was just giving my opinion.

The link is generic to the wiki and goes with my signature on every post. Sorry if you thought the link was for that thread.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
chaz
 
Posts: 12974
Joined: 27 Feb 2007

Postby LynnC » Tue Oct 26, 2010 11:56 am

My bad.

I'm wondering how long this process takes?

ReConTrust.....who the heck are they?

LynnC
LynnC
 
Posts: 742
Joined: 1 Mar 2007
Location: California

Postby zaplunken » Tue Oct 26, 2010 10:16 pm

Your #2 sounds like all you need. When I paid off mine I got a photocopy from town hall showing the page number, date, the fact the mortgage company told them I paid it off.
User avatar
zaplunken
 
Posts: 678
Joined: 1 Jul 2008

Postby sscritic » Tue Oct 26, 2010 10:38 pm

The key is that your document represents two transfers: from MERS to ReCon to you.
Mortgage Electronic Registration Systems, Inc as the present Beneficiary under said Deed of Trust hereby substitutes a new Trustee, ReconTrust Company, N.A. under said Deed of Trust, and ReconTrust Company, N.A. as Trustee under said Deed of Trust does hereby reconvey, without warranty, to the person or persons legally entitled thereto, the estate now held by Trustee under said Deed of Trust.

If you look back at my example in the first response, MERS was not involved. The transfer went from the Trustee to the buyer of my house ("the person or persons legally entitled thereto"). The result was the same, the trustee no longer held the property to ensure that you (or I) made the required payments.
sscritic
 
Posts: 21279
Joined: 6 Sep 2007


Return to Investing - Help with Personal Investments

Who is online

Users browsing this forum: dodecahedron, l2ridehd, MerriebytheSea, P_Nut, V1RTUS and 45 guests