Lost Trust Deed/Note Bonds

Lost trust deed bonds (also known as lost trust note bonds) are required by title insurance companies when there is uncertainty regarding the payoff status of a promissory note/deed of trust on real property. 

A person selling or refinancing their property needs to demonstrate that there are no liens against the property. This bond allows a lien to be removed,which in turn allows the Trustee to proceed with the reconveyance. A reconveyance is a document that transfers a property’s title from a mortgage lender to the borrower, once the borrower has fulfilled their obligation to repay the loan.

We typically see requests for this bond when there is lack of proof regarding the payoff of a mortgage, and the beneficiary (lender) cannot be located or refuses to issue a reconveyance OR when there is proof of payoff but the beneficiary cannot be located to sign the reconveyance.

The amount of the bond is determined by California Civil Code 2941.7 to be double the amount of the original debt obligation. For example, if the original debt owed is $100,000, then a lost trust deed bond will need to be in the amount of $200,000.

Anyone applying for a lost trust deed bond will need the following documents:

  • Application packet (provided by us, your surety agent)
  • Copy of the preliminary title report
  • Copy of the deed of trust
  • Payment records (if available)

We offer competitive rates for all of your bonding needs. If you have questions or would like more information, please give us a call today!