by Mr. T in DC
Question by Hooper923: Is a New deed needed with refinance of mortage?
Do you need to have a new deed drawn up if you are just refinancing the existing mortgage or does the old deed run with the land?
Answer by Steve D
Depends on what state you live in. In some states, the recordation of the title is done as a deed in trust. Under a deed in trust, the mortgage holder actually holds the deed with promise to render it upon payment of the lien (the mortgage). Since the refinance pays off the mortgage, that trust holder would release the deed and a new deed of trust would be filed deed of trust (this should happen regardless of whether you refinance with the original mortgage holder or a new lender since the lien would still have to be released).
Similar requirements may be in place in other states where the lender registers the mortgage against the deed and this mortgage must be released before a new mortgage can be registered.
Check with the town/county clerk for more info.
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