02/20/2026
A missing loan Reconveyance can delay — or completely derail — a real estate closing.
Here’s what most buyers and sellers don’t realize:
When a property has an outstanding loan, that loan is secured by a Deed of Trust. Once the loan is paid off, the lender must record a Reconveyance — a document that officially releases the lien from the property title.
👉 No reconveyance = the lien is still legally attached.
👉 And you need reconveyances on all outstanding notes in order to close a deal with clean title.
But what happens if the original promissory note is lost?
That’s where a Lost Note Bond can step in.
A lost note bond is a type of surety bond that protects against the risk of the original note resurfacing later. It allows escrow and title to move forward with releasing or transferring the lien so the transaction doesn’t fall apart.
Have you ever had a surprise come up in escrow?