When evidence of repayment of a deed of trust cannot be found, and you are attempting to either sale or refinance your home, the title company may require you to obtain a lost trust deed bond.
This surety bond requirement from title companies typically applies in three states:
Since you are unable to produce a reconveyance of the deed, the surety bond serves as a financial guarantee which protects the title company from any future liability should the deed be subsequently discovered and determined to have not been satisfied. However, in this connection, a statute of limitations is applicable. The amount of time will depend on which state your home is in.
While there are also state regulations which calculate the amount of the lost trust deed bond required, ultimately, you’ll “go with” whatever the title company requests of you.
And since your lost deed reconveyance bond is being issued on behalf of the title company, they are essentially the final arbiter of the amount required.
As a homeowner, the good thing about a lost deed of trust is that the title company will provide you with many of the items that you’ll need to provide to our agency to have your bond issued.
These items from the title company include:
In addition to that foregoing, from you, we’ll need the following:
Your completed lost trust deed bond application and supporting documentation are submitted to our underwriters for analysis and approval.
Through our agency, lost trust deed bonds with a requirement of $100,000 or less, have the potential for expedited approval, if the credit profile is strong and commiserate with underwriting guidelines.
Lost trust deed bond amounts over $100,000 go through a standard underwriter review. These will also require the financial statement discussed above.
Regardless of the amount, however, big or little, a credit inquiry is required. Credit inquiries are “soft pulls” which do not adversely impact your credit score. This is true not only of our agency, but any surety bond agency.
During the underwriting process, questions about different aspects of your loan are perfectly normal and to be expected. The sooner you are able to provide answers, the sooner we’ll be able to have your reconveyance surety bond approved.
After the approval, you will need to make the premium payment. The premium payment is required before your trust deed bond is issued; it does not take place after the close of your loan.
Once issued, we’ll mail your surety bond document to you, because you’ll need to sign your original bond before having it filed with the title company.
In California, you’ll also need to include an affidavit. This item is filled out by you, not the surety company, and is separate from, but to be included along with your surety bond.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, court, probate, and other surety bonds in all 50 states.
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