Legal Question in Real Estate Law in Colorado
Deed of Trust Release
In 1993 my husband and I aquired a private loan to avoid foreclosure on our home. A Deed of Trust was placed on our property as well as a home owned by my parents to secure the deed. We sold the house in 1994, resulting in the lender being paid in full. We just found out that for some reason the lien on my parents house was never released. The Title Company only keeps paperwork on closings for seven years, so they said they can't help us. The Clerk and Recorders office says the lender must sign a Release of Deed in order to remove the lien. The problem is that the company we used for the loan is no longer in business. How do we get the lien released?
1 Answer from Attorneys
Re: Deed of Trust Release
I recommend you attempt a practical remedy first. Try to locate the lender. You state they went out of business, but you don't state if they sold the business, liquidated the business, or otherwise ceased to exist as an entity. If the business was sold, try to find out the name of the buyer. The records maintained by the Secretary of State of the State of Colorado will be helpful, if the lender was an entity formed and existing under Colorado law, particularly if the entity was formally dissolved in accordance with the provisions of the Colorado statutes.
If this approach does not work, you can always initiate a quiet title action. Alternatively, a title company may accept a judgment arising out of a declaratory judgment action. A declaratory judgment action would probably be quicker and less expensive than a quiet title action.
The practical approach will be preferable from your perspective, because it will undoubtedly be less expensive.
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