08/07/2017
OLD PRIVATE PARTY LOANS: Working in this escrow profession since 1978 there is one thing that remains constant..... buyers and sellers do not know what to do when they pay off (or are paid off) a private loan on their property. When the loan is brand new, some escrow offices (ours included) try to give both the buyers and sellers written information as to what to do when the loan is paid off. KEEP the original documents for the loan in a safe place. They are literally the PINK SLIP to the property. When the loan is paid off, those original documents must be submitted to the TRUSTEE named on the documents (not a trustee of a trust) and the TRUSTEE will issue a Full Reconveyance to be recorded in the proper county. It's always best to issue a Full Reconveyance using the original documents. Remember, just because you have a Grant Deed for your property, you may still have a Trust Deed of record indicating a lender's interest in the property. Feel free to contact our office if you have any questions about escrow, loan payoffs, 1031 exchanges, Refinances etc. We are here to help!