Substitution Of Trustees In Mortgages And Deeds Of Trust: Fill & Download for Free

Perhaps you are referring to a substitution of the trustee? A deed of trust, unlike a mortgage, has three parties: a lender, a borrower, and a trustee. The trustee has the power to enforce the deed of trust - e.g., if the borrower doesn't pay as agreed, the trustee forecloses on the property. For many reasons, a need may arise to switch trustees. This should not have any effect on the borrower.

First, let's separate non-judicial foreclosure states, from judicial. In most non-judicial states there is no requirement to produce evidence that the foreclosing party holds the note (Nevada (state) recently changed their laws to add this requirement). Instead the right to foreclose is granted by the homeowner in the "deed of trust" to a trustee. The trustee can be changed through the recording of a substitution of trustee.Bruce Feldman: note that MERS does not eliminate the recording of mortgages or deeds of trust; MERS is only used to keep track of "assignments", which document changes to the "beneficiary". Note that the term "beneficiary" itself has become convoluted. These days it typically reflects the "servicer" of the note (the party you send payments to), which may be different than the "holder" of the note (the actual lender).Seems to me the crux of the problem is that state laws haven't kept up with changes in the lending industry. Specifically, I think the laws should be revised such that requirements for "servicers" vs. the acutal underlying "lender" are clearly spelled out.As to the original question, if the lender can't locate the original note, then they can file a lost note affidavit. The borrower could certainly challenge such a filing, but for the borrower to prove it never existed they'd need a plausible explanation for why a mortgage or deed of trust was recorded, and where they came up with the money for the purchase, if not from said loan. Now one could argue that it was a different lender - but that issue would be between the lenders, and shouldn't give the borrower any relief from their obligation to repay the loan.

Do you want something to prove the LOAN was paid off?Or a document to prove who the legal OWNER is?ALL Past & current recorded property documents are available to the public from the local county recorder. (County the property is located in) Under Federal law, counties must make such records available to view, free of charge, at the county offices during business hours. Copies must be available upon request, for minimal cost.Many counties have their records available online, sometimes just data, but often full copies. Search the specific county website to find out their accessibility.My job is to prepare mortgage release docs for lenders across the country, so I get this kind of question daily from homeowners, because many homeowners/borrowers don't realize that the recorded Mortgage and the Property Deed are completely different documents.‘Deed' is used in the name of MANY Real Estate & mortgage documents with very different purposes.When you hear the word “DEED”' try substituting ‘“document" instead. “Deed" simply means the document is a legally enforceable agreement between the parties named in the document.Generally though when someone asks for “THE DEED,” they mean the document that shows the LEGAL OWNER of the property. A property Deed is recorded whenever the OWNER(s) transfer full or partial ownership from one party(ies) to new party(ies). (The document may be called Warranty Deed, Owners Deed , Quit-claim Deed, Property Deed, etc) Only the current legally recorded owner can transfer ownership by adding parties, selling the property or transferring it to another party, trust or estate. The LENDER is not an ‘ owner', & is not named on the property Deed, so the lender will NOT have the recorded deed, or even a copy. No matter how often you refinance, the PROPERTY DEED is not affected by the loan / lender.A “mortgage loan" may be secured with a “Mortgage, Deed of Trust, Trustees deed, Security Deed, etc. “ basically a ‘mortgage' is the contract between LENDER and BORROWER covering the terms of the mortgage loan and granting the lender limited rights / interest in the property, in return for a loan to the borrower. ( a Deed of Trust has 3 parties: Lender, Trustee, & Borrower ) But the lender NEVER ‘owns' the property. The lender records the Mortgage / Deed of Trust in the county public records and then holds the original document as security until the loan is paid - in - full.When the loan is paid off, the lender records a Release of Mortgage, (Release Deed, Satisfaction, Cancellation, Reconveyance of Deed of Trust, etc.) This ‘release' identifies the Mortgage/ Deed of Trust previously recorded in the county records, states that the contract is now satified and the lender is authorizing the county to ‘release' or cancel the recorded contract from the county property records.Each state has a specific time limit for either recording a release of mortgage with the county or ‘delivering' an original release to the borrower for recording. Most states do NOT require mailing a recorded copy to the borrower, because the records are available to the public through the county. However, most lenders mail the borrower the recorded release, if they receive one back from the county.