Deed of Trust never recorded with Title Company

Chapter 7 Bankruptcy for Businesses 7 views 2 answers
In 2008 I purchase my first home with bank #1 had Title Insurance and Escrow. In 2010 I decided to refinance with bank #2 there was no title insurance and no escrow. There was a Deed of Trust recorded in the county records. Try to short sell the home had offers for more than the bank wanted but they fail in escrow no one knew why. In 2011 I filed chapter 7 did not reaffirm the mortgage. Bank #2 never foreclose. The bank try to sell the home in auction fail. A few moths pass by bank #2 sue me to quite title then withdraw from the law suit. I called my old title company and told them what is going on. They told me I own the home with bank #1 and bank #2 was never on title and that the deed of trust from bank #2 is not in their system. I don’t remember signing a deed of trust with bank #2 I t

Attorney Answers

2
Clayton Walker ·
If a lender fails to perfect their lien prior to a bankruptcy filing, they are treated as a general unsecured creditor. Perfection of a mortgage or deed of trust requires recording in the county deed records. It appears you may have discharged the debt to bank 2 in the bankruptcy.
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Frank Sariol ·
Your debt with Bank 2 was discharged in BK. If your bankruptcy is now closed, Bnak 2 will try to foreclose but they may have a problem doing so as they did not perfect the mortgage by recording it. They cannot come after you personally and I think that you should consult with an experienced real estate attorney that can advise you on the bank's position after the BK.
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