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Old 05-30-2010, 05:36 PM
 
116 posts, read 247,045 times
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How does this work in the State of NC?

If you payoff a mortgage, the lender sends a payoff notice to the homeowner saying there's no balance left. The lender also sends a payoff notice to the Office of Registrar of Deeds in the city where the property is located. The payoff is then recorded with the deed office. But what happens after that? Who sends the original deed to the homeowner and where does it come from? I heard that in the State of NC there are two deeds? Can someone in real estate set me straight on how it works here?

Thanks.
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Old 05-30-2010, 07:16 PM
 
Location: Charlotte, NC
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No, there is only one original deed of trust. The lender marks it paid/released, then, sends it to the county to be recorded. The county then returns it to the lender who is then supposed to forward it to the homeowner.

If you have paid off your mortgage, you need to follow the process and ensure that your lien not only shows that it was paid...but, that it was also RELEASED. This will save you a lot of headache in the future. (If it is not released, it will remain on the title to your property and appear as though it is an active lien. You won't be able to sell or refinance until that lien is removed. Obviously, getting this taken care of sooner is a lot easier than later)

Depending upon what county you live in, you may be able to find this information online in the recorded deed section.
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Old 05-30-2010, 08:07 PM
 
116 posts, read 247,045 times
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Okay, this is not what the customer service told me when I asked them a few weeks back. They said that it was up to the county after they recorded it to get the deed of trust back to the homeowner. Yes, their customer service has been less than well informed on more than one occasion.

So, let me follow you. Once the county has posted a SAT OF SECURITY INSTRU in their book online, then this information goes back to the lender? Then the lender, sends out the deed of trust to the homeowner? Where does the release come in? Is the SAT OF SECURITY INSTRU considered a release? And how long does all of this take once the SAT OF SECURITY INSTRU has been posted?

What even makes it more confusing is that I was told that the deed of trust is held by the closing attorney in the State of NC. Was that incorrect?

Thanks for your help.
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Old 05-30-2010, 08:34 PM
 
Location: Charlotte, NC
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Quote:
Originally Posted by Jim Ignatowski View Post
Okay, this is not what the customer service told me when I asked them a few weeks back. They said that it was up to the county after they recorded it to get the deed of trust back to the homeowner. Yes, their customer service has been less than well informed on more than one occasion.

So, let me follow you. Once the county has posted a SAT OF SECURITY INSTRU in their book online, then this information goes back to the lender? Then the lender, sends out the deed of trust to the homeowner? Where does the release come in? Is the SAT OF SECURITY INSTRU considered a release? And how long does all of this take once the SAT OF SECURITY INSTRU has been posted?

What even makes it more confusing is that I was told that the deed of trust is held by the closing attorney in the State of NC. Was that incorrect?

Thanks for your help.
No, the deed is NOT held by the closing attorney. The deed should be returned to the lender so that they can then prepare a RELEASE OF LIEN to also have recorded. Both the SAT OF SECURITY INSTRUMENT & the RELEASE OF LIEN should be mailed to you. Probably you will get the SAT first and the RELEASE no more than a month later. Again, you might be able to find it online to print off and keep for your records.

Now, did you refinance your mortgage or simply pay it off? If you refinanced it, then, this should all be done by the closing attorney (assuming that you had one) ...meaning that the satisfied deed and lien release is returned to him and the recordings are usually hand-carried to the county by his flunky. You can then aggrevaite him/her daily to make sure that you receive your proper documents. It is their responsibility as your agent to ensure that you have all the proper documents. (You paid him A LOT of money to do this...look on your settlement statement and find the line that says "settlement fees") So, in that case, it would be the closing atty that would then mail these things to the homeowner. If you just paid it off yourself, well, then, this is YOUR homework.

As a mortgage underwriter, I see too often (just had one this week) where people refinance their mortgages and the previous mortgage company does not release their liens. Then, they go for an equity loan and it looks like they have three liens already on their property!! In the case that I had this week, these poor folks refinanced in 1992 and the original mortgage company is no longer in business!! So, this is very important to keep on top of. Make sure that you receive that Release of Lien. Now, some mortgage companies combine two in one...simply stamp that the mortgage is satisfied/paid and released at the same time...this saves two recording fees. That is perfectly acceptable. The key is that it says somewhere that the lien is RELEASED. Again, I cannot stress enough how important this is, because in the end, it is the homeowner's responsibility to ensure that they have a clear title in the event they want to sell or even simply leave their property to heirs in a will. Liens that are on title that are not needed are called "clouds". Obviously, clouds on title are BAD.
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Old 06-09-2010, 06:26 PM
 
116 posts, read 247,045 times
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Just wanted to say thanks again. You were very helpful.
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Old 06-09-2010, 06:58 PM
 
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I bought my house in 1000, and refi'd in 2005. My credit report shows only the current mortgage holder as having a lien on my home. Can I assume that I have no clouds?
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Old 06-09-2010, 08:42 PM
 
Location: Charlotte, NC
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Quote:
Originally Posted by vmaxnc View Post
I bought my house in 1000, and refi'd in 2005. My credit report shows only the current mortgage holder as having a lien on my home. Can I assume that I have no clouds?
not necessarily. It can show paid on the credit report, but, not released from the title.

Depending upon which county you live in, you might be able to look it up on line. You are looking for a "satisfied deed of trust"
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Old 06-09-2010, 08:44 PM
 
Location: Charlotte, NC
7,041 posts, read 12,811,809 times
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Quote:
Originally Posted by Jim Ignatowski View Post
Just wanted to say thanks again. You were very helpful.
no problem!
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Old 06-10-2010, 04:00 PM
 
Location: Lake Norman
224 posts, read 387,461 times
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Quote:
Originally Posted by vmaxnc View Post
I bought my house in 1000, and refi'd in 2005. My credit report shows only the current mortgage holder as having a lien on my home. Can I assume that I have no clouds?
It usually takes about 30 days for the cancellation to show up as being recorded from the orignal lender. It is always wise to do an online search to ensure that it has been cancelled.
In Mecklenburg County it can also be notated as:
REL - Release
CAN - Cancellation
It should also reference the correct Deed Book and Page Number that
the Deed of Trust (the Mortgage Instrument) being cancelled, was originally recorded.

Sometimes people get confused between the Deed and the Deed of Trust.
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Old 08-22-2015, 01:47 PM
 
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Reputation: 11
I have a question. In Duplin County NC. There is a piece of property my husband and I are wanting to purchase. We have gone through all the legal dealings and now with the closing lawyer she's did all the title search things. She found a lien on the property from a Mortgage Company. Okay the people we're wanting to purchase the home and land from says it's paid off. Which we fee sure happened back in 2011. My question pertains to the mortgage company. They have no record of the loan for these people, if that is the case then why can't they go ahead and release the lien so we can continue our purchase.Is there something the neighbors can do and bypass the mortgage company. She cannot find her paperwork on this matter.
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