Legal Question in Real Estate Law in California

Re: Never got a reconveyance - lender now bankrupt

You need to file a quiet title action in superior court.

Re: Never got a reconveyance - lender now bankrupt

You should file a quiet title action to remove the encumbrance of record. It will not be expensive.

Re: Never got a reconveyance - lender now bankrupt

Rather than a suit to quiet title (which would be an acceptable means), you could sue to remove a cloud on title. This somewhat more targeted approach might be quicker and cheaper.

Whether on not to sue at all is a personal tactical decision. Property owners have gotten along just fine for decades with an unreconveyed deed of trust showing against their real property.

Finally, California has a "Marketable Record Title Act" starting at Civil Code section 880.020, which was passed about 25 years ago, and makes old clouds on title self-clearing after a number of years. For example, Chapter 2, sections 882.020 to 882.040, cover "ancient mortgages asn deeds of trust." The lien of a deed of trust expires under these provisions, just as surely as if it had been reconveyed. One would have to see the actual deed of trust and note to know whether this one has expired already, but it very well may have, in which case filing any suit is unnecessary. See Civil Code 882.030, which says that recording a reconveyance (in circumstances covered by the law) is not necessary.