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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Solving a lost note problem... Posted by Ward-CA- on January 28, 2004 at 10:43 PM In Reply to: lost note bond posted by Stuart Davenportt on January 28, 2004 at 7:53 PM : I could use some help. : I live in Washington, DC, and I am buying my first home. I need to get title insurance before I buy the home. : The problem is that the 1st Trust on the home has not been paid off, and after researching the loan for a month we still cannot locate any current record of it. The bank that originally was servicing the loan went bankrupt in 1999, and it is most likely the loan was fully written off because it was badly in default. There is now no current claim on the loan we can locate. : I have heard of a "lost note bond" that I can purchase that will cover the lost loan, but I do not know much about it. : Also, what is involved in a "quiet title action"? How long does it take? : Is there anything else I could do? : Thanks so much. ======================= Stuart, Click on the MERS link below and read the April, 2003 article about the mortgage electronic registration system you can take advantage of. Call the 800 number for MERS and give them all the info off the recorded trust deed. You local recorder’s office will have a record of it. See if the trustee that was named in the trust deed is still around. With the trust deed info, MERS will tell you the successor of the bankrupt lender and who was the last servicer of record. The premium for a lost note bond is calculated by doubling the original loan amount and multiplying that sum by two percent (2%). To learn more about the bonding process you can contact Alliance Surety (800) 598-7535 or go to their web site http://www.alliancesurety.com Another company is the Phillips Bonding Agency (510) 251-2400. Their web site is http://www.phillipsbonding.com I don’t recall any recommendation in the use of a “quiet title action” to solve a lost note situation. Would be an drawn out, expensive exercise I think. Hope this helps. MERS - Mortgage Electronic Registration System Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I could use some help. : : I live in Washington, DC, and I am buying my first home. I need to get title insurance before I buy the home. : : The problem is that the 1st Trust on the home has not been paid off, and after researching the loan for a month we still cannot locate any current record of it. The bank that originally was servicing the loan went bankrupt in 1999, and it is most likely the loan was fully written off because it was badly in default. There is now no current claim on the loan we can locate. : : I have heard of a "lost note bond" that I can purchase that will cover the lost loan, but I do not know much about it. : : Also, what is involved in a "quiet title action"? How long does it take? : : Is there anything else I could do? : : Thanks so much. : ======================= : Stuart, : Click on the MERS link below and read the April, 2003 article about the mortgage electronic registration system you can take advantage of. Call the 800 number for MERS and give them all the info off the recorded trust deed. You local recorder’s office will have a record of it. See if the trustee that was named in the trust deed is still around. : With the trust deed info, MERS will tell you the successor of the bankrupt lender and who was the last servicer of record. : The premium for a lost note bond is calculated by doubling the original loan amount and multiplying that sum by two percent (2%). To learn more about the bonding process you can contact Alliance Surety (800) 598-7535 or go to their web site http://www.alliancesurety.com : Another company is the Phillips Bonding Agency (510) 251-2400. Their web site is http://www.phillipsbonding.com : I don’t recall any recommendation in the use of a “quiet title action” to solve a lost note situation. Would be an drawn out, expensive exercise I think. : : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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