Brian, I’ve got a closing with an unreleased deed of trust, but the settlement agent who closed the deal is out of business and gone. What do I do?

Unfortunately we are seeing more and more of this as a result of the economy generally and the real estate market specifically.

If the problem is an unreleased deed of trust then have the sellers search their records carefully to see if they can locate anything from the closing – a payoff statement, HUD-1, etc.  We can usually track down the lender, verify payment, and get the release directly.

If the problem is something else – proof of death in the chain of title, an affidavit, or something to that effect – then we can usually solve those problems as well, it just takes us some time to do so.

But this question really suggests two indirect observations.  First, if the seller had owner’s title insurance then the seller would have a better chance of closing on time and would be protected if not.  Second, this is why that buyer should close with Lytle Title.  I have been doing this work for two decades and I have every file I have ever closed, and I am not going anywhere.

Please feel to contact me if you have questions.