Quick Answer
An unreleased deed of trust is a recorded security instrument that still appears against a property even though the underlying loan it secured may have been fully satisfied. A release, reconveyance, or other curative procedure may be needed to clear it from the title.
In many states, a deed of trust functions as the security instrument for a mortgage loan, similar to a mortgage in other states. When the loan is paid off, the beneficiary (lender) should direct the trustee to record a release or reconveyance. When this does not happen, the deed of trust remains on the public record to the deed of trust.
Why Might an Unreleased Deed of Trust Remain?
The same reasons any old lien remains unpaid or unreleased: the lender forgot, the release was lost or never recorded, the loan was sold and the new servicer missed the release, the lender went out of business, or a recording error occurred. Learn why an old mortgage may still show on title.
Does It Mean I Still Owe Money?
Not necessarily. An unreleased deed of trust means the document still appears in the public record, but the underlying debt may have been fully paid. The task is to prove the debt was satisfied and obtain the appropriate release. Learn what happens when a mortgage was paid but never released.
How Is It Addressed?
If the lender or its successor is still in business, a request for a release or reconveyance can be made. Evidence of payoff may be required. If the lender no longer exists, alternative curative options may be available through underwriting approval or legal procedures.
FAQs
Is an unreleased deed of trust the same as an unreleased mortgage?
They serve similar functions in different states. A deed of trust involves three parties (borrower, lender, trustee) while a mortgage involves two (borrower, lender). Both create a lien on the property that secures the loan, and both need to be released when the loan is paid off.
Can I remove an unreleased deed of trust myself?
The release or reconveyance must typically be prepared and recorded by the lender, trustee, or an authorized party. If the lender is uncooperative or no longer exists, an attorney may need to pursue legal remedies.