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What if Deed of Trust is not recorded?

Discussion in 'Loan Modification' started by Girlgolfer, Sep 8, 2011.

  1. Girlgolfer

    Girlgolfer LoanSafe Member

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    [TD="class: Bu"]So I thought I would do a little digging to see if I could find out who the investor is on my note. I went to the Registrar of Deeds and came up with the following.

    There are deeds transferred from our builder to me and my husband and then a correction deed from my husband to me because I used personal funds and the attorney screwed up.


    There is one Deed of Trust from Grantor, me and my husband (which is incorrect) for $347,000 to Suntrust, which was a second loan from Suntrust because the initial sale on my home in California fell through at the last minute. There was also an assignment or rents because of the second loan. There is a Satisfaction of Security Instrument when that loan was paid in full upon the sale of my home.


    The Deed of Trust for the million dollar loan was not recorded! I had realized that the interest rate was incorrect on the original docs and asked them to correct it, so it was corrected the next day, but I am wondering if by doing that, when I went in the next day to sign the corrected docs, they simply were not put in the "record" pile.


    Please tell me what this means, if anything. I am in North Carolina!













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  2. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    It still is a Deed of Trust and can be recorded on the property at anytime. You signed and initialed it. However if a foreclosure occurs and the Deed of Trust is not recorded, then that is technically an unlawful sale.
  3. TomEason

    TomEason LoanSafe Guide Staff Member

    Girlgolfer

    Thanks for posting that interesting info. This could be a windfall to the tune of $1M for you. I would recommend you confirm the absence of a recorded trust deed by paying a title company to do a title search of your property.

    If said trust deed doesn't show up, I recommend you consider immediately have recorded a "friendly" trust deed that will be at least as large as all of your equity. A "friendly lien" is one which is in favor of a trusted friend or family member who won't FC on that lien. That trust deed would be security for a "friendly note" in favor of your trusted friend or relative.

    Then, if the lender were to ever discover the error and record their trust deed, it will be lower in priority. They will be SOOL.

    Good luck and let us know what you find out. Thanks.
  4. Girlgolfer

    Girlgolfer LoanSafe Member

    Interesting. I will indeed have the title search done. Could the trusted friend or relative be my husband who was mistakenly put on the deed but not on the note? My total intention was to have my property as sole and separate like I did in California, but here in NC, they're a little old fashioned and just assumed that my husband should be on it and they told me "that's just how NC does it" until I updated my will and the attorney told me that it simply is not true and we corrected the original deed!

    Also, I have not idea why my first post posted so strangely. Any way to fix that?
  5. TomEason

    TomEason LoanSafe Guide Staff Member

    Girlgolfer

    Thanks for your post. I would definitely not use your husband. Who would ever believe that kind of highly suspicious transaction, i.e. your husband lending your $1M secured by a deed of trust on your home?

    I have no idea why your post appears unusual, as I'm not the webmaster - simply a volunteer who was named a moderator.
  6. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    I would like to add here that the laws governing recording in your state come into play here. If there is a requirement or time frame where the Deed of Trust must be recorded then you have a possibility to go for a Quiet title Action pursuant to your state law. I myself am going to a Quiet Title action in an unlawful detainer that has been filed against me. The Trustee's deed is an erroneous recorded instrument and pursuant to my state law I have priortiy lien.
  7. Girlgolfer

    Girlgolfer LoanSafe Member

    I just ordered a title search so hopefully I will have the info by early next week.

    Thanks again
  8. TomEason

    TomEason LoanSafe Guide Staff Member

    Girlgolfer

    Good for you. I hope the results of the title search are favorable for you!
  9. Girlgolfer

    Girlgolfer LoanSafe Member

    Got the results. Unfortunately for me, the $1 million D of T is there. I wonder why I couldn't find it in the Registrar of Deeds records but I could find the others.

    Next....
  10. TomEason

    TomEason LoanSafe Guide Staff Member

    Girlgolfer

    Thanks for the quick update. Sorry the news wasn't good. I kind of suspected that would be the result.

    No telling why the DOT didn't turn up on your search on the deed registry. Gremlins in the database or a data entry error perhaps?

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