Chain of title - Research and Reconveyance


#1

Hi all

When I’m looking at a chain of title the goal for me is to eliminate as many of those ? as possible on the transaction history details as stated by Michelle in her webinar.

I’m almost ready to get a job as a title officer :slight_smile: but here’s a couple of questions circling in my head right now that I would love to get cleared:::

Lets say original grant deed is given to husband/wife - A 1st position loan on the property is under the husbands name only and recorded on the same day. Does there have to be a quit claim deed here somewhere by the wife given to the husband which would have been filed? Does the same situation apply when a refinance happens as well?

When a refinance happens, is the reconveyance typically filed the same day and does a reconveyance have to be filed even if its the same bank doing the refinance?


#2

Hi Jigga,
When a married person takes ownership of a property as their sole and separate property then the title company will have the spouse sign an interspousal deed acknowledging that they are purchasing the property sole and separate. If a wife/husband is deeding off a property then there would be no additional requirement from the spouse other than the deed that is changing the vesting (in some cases this could just be a quitclaim). If the property as already vested as a married man sole and separate and he wants to take out a new loan there would be no additional requirement from the spouse.
When a loan is refinanced the title company will send the payoff check to the lender with the instructions to reconvey the loan. This could take a few weeks to a few months to be recorded. The title company will continue to track this to make sure the reconveyance is recorded since they are insuring the new lender. Back in the refi boom it was taking the lenders a few months to get the recons filed so several months may not be out of the question for some years.
It does not matter if it is the same bank. If one Deed of Trust was used to pay off another Deed of Trust then the lender must reconvey the Deed of Trust that was paid off. This is particularly important if the loan being paid off was an equity line!