200K Title Mistake?
hello, i am a rather new investor and own a rental property in AZ. I refinanced the property in 2003 a few years after i bought it. I recently have been trying to refi since about april 2004. Now, the reason it has not gone through is that the deed of trust for the refi in 2003 was never recorded. the lender is blowing me off. and the title company is trying to set up new paperwork for me to sign, but the original documents seem to be missing. my question is what if i sell right now? there is nothing recorded with the county recorder as far as a loan goes. Is the title company liable here? what if i stop making payments? please let me know what you think...[ Edited by 415manager on Date 08/17/2004 ]
should i just sell the house and walk away from the loan? my credit would be bad, but the 200K is now mine? how can they foreclose or have collateral if the loan is not recorded?
they will sue you civilly on the Note. also, when you try to sell, your buyer's title company will have you sign an owner's affidvit stating there are no unrecorded liens or judgments. if you tell the truth, the buyer won't buy. if you lie and sign the affidavit, you are lying under oath - not sure what that can actually lead to but nothing good.
What does it mean "the lender is blowing you off"? What are they saying to you? Do they now have any record of you loan?
Generally, just because the deed of trust was not recorded does not mean you are not responsible for the loan. If you stop paying on the loan, they can foreclose and take away your house.
I would suggest contacting a real estate attorney and see what they say.
thx for the help. this is a horrible situation b/c different people give me different advice. I know that the note would still exist , but the fact is that the original documents for the deed of trust are lost and it is slowing my whole plan down.
As long as the new lender is going to get title insurance for the full amount of their loan, they shouldn't care. And as long as you use the same title company, they should have no problems issuing such a new title policy if they handled the previous refi closing.