Help understanding mortgage payoff letter

Dear Fools:

I recently paid off my mortgage in December 2021:)))

The documentation I received from the lender is titled “Appointment of Successor Trustee and Deed of Reconveyance.” It appears the deed of trust was transferred from the original holder appointed by the lender (Chicago Title Insurance Company) to another seemingly random Title insurance company (First American Title Insurance Company).

I live in Oregon and I had put my house in a trust of which I am the trustee. I have never paid off another mortgage so am unsure of procedures to expect.

My questions:

  1. Is this normal?
  2. Why wasn’t the deed of trust sent to me?
  3. Is this enough proof that I have paid off my loan?
  4. Why was I not asked who I would like to hold the deed of trust?
  5. I have heard nothing from the new holder of my deed of trust, should I contact them?

Thanks in advance for your help.

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mumbi: “I recently paid off my mortgage in December 2021:)))”

Congratulations!

“The documentation I received from the lender is titled “Appointment of Successor Trustee and Deed of Reconveyance.” It appears the deed of trust was transferred from the original holder appointed by the lender (Chicago Title Insurance Company) to another seemingly random Title insurance company (First American Title Insurance Company).”

Was the document you received recorded? If yes, there should be a Clerk’s File Number or Volume and Page or something indication where it was recorded - the County Clerks, or Recorder of Deeds or some similar official for the county in which the home is located.

Who executed the Deed of reconveyance? What words of reconveyance were used. To whom was it reconveyed?

“I live in Oregon and I had put my house in a trust of which I am the trustee.”

Most real estate law is State law driven, especially with respect to conveyancing and mortgages, and release theerof.

"My questions:
1) Is this normal?
2) Why wasn’t the deed of trust sent to me?
3) Is this enough proof that I have paid off my loan?
4) Why was I not asked who I would like to hold the deed of trust?
5) I have heard nothing from the new holder of my deed of trust, should I contact them?"

  1. I am not familiar with Oregon law so I do not know. In Texas, one would typically receive Release of Lien executed by the mortgagee.
  2. Why? If the mortgage has been paid off and the deed of trust released it has no value. Also, once recorded, the original deed of trust is not typically required any more.
  3. Possibly, but not enough information to truly answer, and it would be a question of Oregon law.
  4. No reason to, probably. Once paid and released/reconveyed there is no longer a deed of trust to
    hold. If you are inquiring about the CTIC to FATCO, it is usually the lender’s choice, because the lender is the one protected by the Deed of Trust. I also suspect that if you review the DoT you probably previously agreed that the Lender could remove the trustee and substitute a new one for no reason.
  5. Probably not, but not enough information provided to truly respond. One would need to know the Grantor/Maker of the document you received, the Grantee/Recipient and what was transferred and the words used to transfer it.

Regards, JAFO

Disclaimer

Yes, I am a lawyer (not licensed in Oregon), BUT THIS IS NOT LEGAL ADVICE; it is only general information. NO CLIENT RELATIONSHIP IS INTENDED TO BE CREATED, NOR IS ANY SUCH RELATIONSHIP SO CREATED. FOR SPECIFIC LEGAL ADVICE YOU SHOULD TALK TO A LAWYER IN YOUR AREA (licensed in Oregon).

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  1. Why wasn’t the deed of trust sent to me?

In IL, it’s a warranty deed that is recorded when you purchase a home. It’s not like when you finance a car, and when paid off; lender gives you the title. On a home, the deed is recorded at the county. So you won’t get the deed of trust. The county will forward you a copy of the document recorded confirming mortgage has been paid off. Commonly it’s “Satisfaction of Mortgage” or “Release of Mortgage.” But you can always check with your local recorder’s office or view it online to confirm the lien release was recorded.

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