[WSBARP] Release vs Recon

[John McCrady]

In my view the Trustee on a deed of trust is a neutral third party, acting only according to it's powers as set forth in the deed of trust act:

The trustee of record shall reconvey all or any part of the property encumbered by the deed of trust to the person entitled thereto on written request of the beneficiary, or upon satisfaction of the obligation secured and written request for reconveyance made by the beneficiary or the person entitled thereto.

Should you reconvey without a request by the beneficiary, in my opinion you are acting outside of your authority.

At a minimum I would want to contact the beneficiary and get approval to reconvey the deed of trust from somewhat with at least apparent authority OR proof of payment from the Grantor and a request for reconveyance signed by the Grantor.


John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98467
253-476-5721
j.mccrady at pstitle.com<mailto:j.mccrady at pstitle.com>

There are no traffic jams on the extra mile



Beginning July 26, 2021, recording fees for most documents recorded in Washington will increase by $100<https://www.piercecountywa.gov/DocumentCenter/View/105275/Recording-Fee-Schedule-Effective-Jul-25-2021->. Please be sure to collect recording fees accordingly. Due to the above increase, our Reconveyance fees will also be increased by $100.00

WARNING-FRAUDULENT FUNDING INSTRUCTIONS
Email hacking and fraud are on the rise to fraudulently misdirect funds.  Please call your escrow officer immediately using contact information found from an independent source, such as the sales contract or internet, to verify any funding instructions received.  We are not responsible for any wire sent by you to an incorrect bank account.


From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Rich Holland
Sent: Wednesday, September 20, 2023 10:07 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Release vs Recon

Sorry to be clear (I was cryptic on my phone), my firm is the trustee.  They sent the full release of mtg to my firm.  My question was, more or less, if the lender is unwilling/uncooperative in providing me with an actual request to reconvey (that I prepare and send to them based on what they sent me) because it does not fit the box they are accustomed to checking, would you insist on the request being signed or is that document which I have in my hands sufficient for a trustee to act?

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Joseph McIntosh
Sent: Wednesday, September 20, 2023 9:53 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] Release vs Recon

Seems to me a lender who records a mortgage release, stating the secured obligation was satisfied, would be estopped from later asserting the deed of trust should remain intact because it was not properly reconveyed.

Or, everyone who subsequently acquires an interest is a deemed a bona fide purchaser.

I don't see how a deed of trust gets effectively enforced after the recording of a release, even though release is not technically the proper procedure.

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of John McCrady
Sent: Wednesday, September 20, 2023 9:38 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] Release vs Recon

>From a title company perspective, that procedure is not valid.  That being said, we have insured through such a procedure on a purely risk basis.  As an aside, we do see out of state lenders, and even out of state attorneys, think the laws of their jurisdiction are applicable to all jurisdictions.)
I would look at the age of the deed of trust and the amount of the loan, along with how long ago the loan would have been paid off by its terms.  I would also look at whether there is a new insured deed of trust that would have paid off the one in question.
If all the considerations line up to my liking I would agree to insure around the invalidly released deed of trust.


John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98467
253-476-5721
j.mccrady at pstitle.com<mailto:j.mccrady at pstitle.com>

There are no traffic jams on the extra mile



Beginning July 26, 2021, recording fees for most documents recorded in Washington will increase by $100<https://urldefense.proofpoint.com/v2/url?u=https-3A__www.piercecountywa.gov_DocumentCenter_View_105275_Recording-2DFee-2DSchedule-2DEffective-2DJul-2D25-2D2021-2D&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=hDHe9lm5VBA9VXO3e3szRw&m=yKW8pIFYCa-LA37Irm7GY-cqZNky1K38_Z1Uzm772rJBfJJJm99xPApdIDiTejr1&s=UY2H0PEjkU6I6D14BNy831SJoxV9ShifAuemsBlEQy0&e=>. Please be sure to collect recording fees accordingly. Due to the above increase, our Reconveyance fees will also be increased by $100.00

WARNING-FRAUDULENT FUNDING INSTRUCTIONS
Email hacking and fraud are on the rise to fraudulently misdirect funds.  Please call your escrow officer immediately using contact information found from an independent source, such as the sales contract or internet, to verify any funding instructions received.  We are not responsible for any wire sent by you to an incorrect bank account.


From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Rich Holland
Sent: Tuesday, September 19, 2023 4:11 PM
To: WSBA Real Property (wsbarp at LISTS.WSBARPPT.COM<mailto:wsbarp at LISTS.WSBARPPT.COM>) <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] Release vs Recon

Out of state lender who is ... difficult ... to communicate with sends a full release of mortgage for an obligation where said obligation is secured by a deed of trust rather than a mortgage.  As trustee would you insist on a clear written request to reconvey (which will be asked for but, again, - difficult communication) or is the full release of mortgage sufficient?

Rich on his phone
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