I purchased property from 1st bank in trustee sale. I use it as my primary residence. I paid $473K in auction The first lien amount is $426K, the 2nd lien is $240K. 15 days later, I received trustee deed from 1st bank. I guess 2nd bank also receive $47K from trustee sale. But 2nd bank never send me release of lien. Do I need to contact 2nd bank to ask them release the junior lien ? The 2nd bank is Washington Mutual, recorded in Cal. Orange County 2005001040896
Reconveyance of junior liens is not required, recording the trustees deed is sufficient.
I did record trustee deed back in Nov 2009 within 15 days period.
If the 2nd loan refuse to recording “release of lien”,
Would the 2nd lien (junior) stay outstanding?
I did not purchase title insurance since it is trustee sale.
If I want to sell the house 10 years later, is this outstanding junior lien causing a problem in the future?
The junior liens secured interest in the property was wiped out by the recording of the trustees deed. A reconveyance is not required. Note that reconveyance is the correct term for the release of a deed of trust.
Thanks for educating me.
As a novice, I am not familiar with legal terms.
I will remember the meaning of "Reconveyance " from now on.