A California lost trust deed bond is a type of surety bond used to clear the title of a property when the original trust deed document has been lost or misplaced. It acts as a guarantee to the holder of the trust deed (also known as the beneficiary) that they will not be financially harmed if the lost document resurfaces and is used to make claims against the property. The surety bond amount must be equal to the greater of either (1) two times the amount of the original obligation secured by the mortgage or deed of trust and any additional principal amounts, including advances, shown in any recorded amendment thereto (most common), or (2) one-half of the total amount computed pursuant to (1) and any accrued interest on such amount, and shall be conditioned for payment of any sum which the mortgagee or beneficiary may recover in an action on the obligation secured by the mortgage or deed of trust, with costs of suit and reasonable attorneys’ fees.
The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.
How How to Get a California Lost Trust Deed Bond
At Surety1 we make it easy to apply for all surety bonds. As a California based surety bond agency, we understand the requirements to underwrite ta lost trust deed bond and have the markets available to get you the very best price as quickly as possible.
- Simple complete our easy to navigate, online application and upload the preliminary title report (or fax it if you cannot scan the document).
- Then, usually within 1 business day one of our surety bond agents will contact you with a firm quote for the bond.
- Sign some paperwork and pay the bond premium.
Once these steps have been completed, the California Lost Trust Deed Bond will be shipped to you for signature prior to delivering the document to the title company. Within 30 days, the trustee (title company) “shall execute and record, or otherwise deliver as provided in Section 2941 , a reconveyance in the same form as if the beneficiary had delivered to the trustee a proper request for reconveyance, provided that the trustee has not received a written objection to the reconveyance from the beneficiary of record. “
Based in Rancho Cordova California (Sacramento), Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003. We also maintain an A+ rating from the Better Business Bureau.
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Here’s how it works:
- When: You need a lost trust deed bond if you’re trying to sell or refinance a property where the original trust deed cannot be found.
- Who requires it: Typically, title insurance companies or other financial institutions involved in the transaction will require a lost trust deed bond to protect themselves from potential legal or financial risks associated with the missing document.
- How it works: You purchase the bond from a surety company, who will act as the guarantor. The bond will be for a specific amount, usually determined by the value of the property and the loan amount secured by the lost trust deed.
- What it covers: The bond protects the beneficiary (and anyone else affected by the lost document) from any loss if the original trust deed resurfaces and is used to make claims against the property. This could include situations like someone trying to foreclose on the property using the lost document.
- Filing the California lost trust deed bond: Once you obtain the bond, it needs to be filed with the county recorder’s office where the property is located. This serves as public notice that the lost trust deed is considered invalid and any claims based on it will not be recognized.
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- Number of parties A mortgage has two parties: the lender and the borrower. A trust deed has three parties: the lender (also known as the beneficiary), the borrower (also known as the trustor), and a neutral third party known as the trustee. The trustee is usually a title or escrow company.
- Foreclosure process If a borrower defaults on their loan, the lender may foreclose on the property. The foreclosure process is different for mortgages and trust deeds. In a mortgage foreclosure, the lender must file a lawsuit in court. The court will then issue a judgment of foreclosure, which gives the lender the right to sell the property. In a trust deed foreclosure, the lender does not need to go to court. Instead, the trustee can sell the property through a nonjudicial foreclosure process. This process is typically faster and less expensive than judicial foreclosure.
- Title to the property In most states, a mortgage conveys title to the property to the lender until the loan is paid in full. In most states, a trust deed does not convey title to the lender. Instead, the trustee holds title to the property until the loan is paid in full.
Per California Civil Code 2941:
“Whenever the obligation secured by a mortgage or deed of trust has been fully satisfied and the present mortgagee or beneficiary of record cannot be located after diligent search, or refuses to execute and deliver a proper certificate of discharge or request for re-conveyance, or whenever a specified balance, including principal and interest, remains due and the mortgagor or trustor or the mortgagor’s or trustor’s successor in interest cannot, after diligent search, locate the then mortgagee or beneficiary of record, the lien of any mortgage or deed of trust shall be released by posting a California Lost Trust Deed Bond or lost trust note bond of two times the amount of the original obligation secured by the mortgage or deed of trust and any additional principal amounts.”
(See CA Civil Code 2941.7 for more information.)
This Lost Trust Deed Bond is the same as a California Reconveyance Surety Bond.
How to Get Your California Lost Trust Deed Bond
- Complete an online application. It’s free and no-obligation.
- One of our surety experts will contact you with a firm quote and an agreement to sign.
- Provide payment and your signed agreement, and then you will receive your Surety Bond!
If you have any questions, please call us at 877-654-2327.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.