Title Search - Associate Documents of Deed of Trust / Mortgage - Voluntary Encumbrance - US Mortgage

Module 8 - Associated Documents of Deed of Trust

Assignment of Deed of Trust:

A written document that transfers the beneficial interest in a promissory note and Deed of Trust from one beneficiary to another.

The original beneficiary on the Deed of Trust endorse the note to a new owner, who becomes the new beneficiary.

The person selling or transferring the beneficial interest under a Deed of Trust is called (Assignor).

The person receiving the beneficial interest under a Deed of Trust is called (Assignee).

Substitution of Trustee:

It is written document that appoints a successor trustee to the trustee named in the Deed of Trust, if the current trustee is unable to act or refuse on behalf of beneficiary or if the new beneficiary under agreement of Deed of Trust decides to substitute the trustee.

This document must be acknowledged by a notary public and recorded with the county recorder in the county.

The substitution must be signed by all the beneficiaries or the successors. It must disclose the recording information and promissory note of the original Deed of Trust.

The prior trustee must be notified in the manner provided by statute.

Subordination Agreement:

An agreement between beneficiaries for changing the property of interest in the property to place a new mortgage as a priority over an existing mortgage expressly stating that one claim is subordinate to another.

The agreement should be signed by the owner of the promissory note and beneficial interest under the Deed of Trust and also the owner of the property.

Reconveyance:

The release from a Deed of Trust by the trustee to the owner of real estate in the form of a deed of Reconveyance to cancel the Deed of Trust, when the underlying loan has been paid.

Types of Reconveyance:

1.      Full Reconveyance

2.      Partial Reconveyance

3.      Bad Reconveyance

1. Full Reconveyance:

The complete Reconveyance of the title of the trustor by the trustee when the underlying loan has been paid in pull.

2. Partial Reconveyance:

The partial Reconveyance of the title to the trustor by the trustee when the underlying loan has been paid in part.

Partial Reconveyance is usually found when a builder or developer has borrowed money to develop the whole subdivision.

The builder or developer records a partial Reconveyance for specific lots by paying part of the loan as and when the individual lots are sold.

3. Bad Reconveyance/Release:

            DOT/Mortgage got released, Assignment has been recorded after the release document, in this case we can called this release as a Bad Reconveyance or Bad Release.

Foreclosure:

A legal procedure in which property is mortgaged as security for a loan is sold to pay the defaulting owner’s debt.

Notice of Default:

It is the notice issued by the Trustee to the Trustor at the time of default.

Notice of Recession/Release/Reconveyance/Cancellation/Discharge/Satisfaction:

It is the notice issued by the Trustee to cancel the Notice of Default or Notice of Trustee’s Sale.

Notice of Trustee’s Sale:

It is the notice issued by the Trustee if the Trustor defaults to pay the payment due after 90 days of issuance of Notice of Default.

Trustee’s Deed:

It is a deed which is received by the highest bidder at the auction, conveying the title to a property from the Trustor.