Legal Question in Real Estate Law in California

No. Carnegie was the owner of your loan at the time it was paid off in the refinance. MERS as the agent for Carnegie substituted the trustee and the trustee reconveyed the deed of trust. Once a deed of trust is reconvened, although it remains in the chain of title as do all documents ever recorded, the legal effect of the deed of trust is cancelled and it no longer has anything but historical relevance.

I agree with Mr. McCormick. MERS was the nominee of the beneficiary, Carnegie, under the original deed of trust. MERS acted as an agent of the beneficiary, meaning the bank, and substituted a new trustee, to execute the reconveyance of the power of sale in the original deed of trust. That instrument, once recorded, clears the original deed of trust.

Important question: How long after the refinancing did you receive this document?

Yes, I agree with Mr. Collins that the timing of the substitution of trustee seems questionable. Did you receive it significantly after refinancing? I would expect the full reconveyance from the old, former lender, but a former lender should not be sustituting trustees.

I don't think Mr. Collins and Mr. Whipple carefully read your question. During refinancing, the former lender is paid off. The former lender then requests the trustee to execute a deed of reconveyance to you, which clears the original deed of trust. If the trustee named in the original deed of trust is unable to act, the former lender uses a document that accomplishes both of these, a substitution of trustee and a reconveyance. The substituted trustee then reconveys, which clears the deed of trust.

Nothing mysterious or nefarious is going on.