How to Tell If a Mortgage Is Secured
There are two aspects to a mortgage loan. First, there is the loan agreement itself, a contract that bounds the borrower to pay back the money used to buy real estate. Second, there is a lien in favor of the lender placed on the title to the real estate. The agreement and the lien combine to form a mortgage loan. An important consideration is ensuring that the mortgage loan itself is secured by a lien on the title to the real estate. There is a process to follow to confirm that the mortgage is secured by a lien.
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Instructions
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Go to office of the register of deeds in the county where the real estate is located. In some jurisdictions, the title is "recorder" of deeds rather than "register." The office is typically located in the county courthouse or the county administrative building. The quickest way to locate the office is to access the county government website or to telephone the main county government telephone switchboard.
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Request to view the title records to the real estate in question. The register of deeds can locate the title records with the legal description, the common street address or the current owner's name. A legal description describes where the land is plotted in a grid system developed by the Public Land Survey System. A typical legal description reads "N 1/2 SE 1/4, SW 1/4, S24, T32N, R18E."
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Review the title records. Title records include the current deed to the real estate as well as previous deeds, liens, death certificates and all other documents filed with the register of deeds office in regard to a particular piece of real estate. Title records for a parcel of property are maintained in reverse chronological order. The most recent deed should be located at the top of the complete set of title records.
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Search for a lien document associated with the real estate and the most recent deed. The lien is filed with the complete set of title records associated with the parcel of property in question. If there is an appropriate lien document securing the mortgage loan, the current owner's name will appear at the top of the lien.
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Ask the clerk in the register of deeds office to prepare a certified copy of both the deed and the lien. A certified copy is one that is stamped and signed by the register of deeds as being a true and correct copy of the original documents. The deed and the lien document provide the evidence you require that the mortgage is secured. Without a lien document in the official records of the register of deeds, the mortgage legally is not secured.
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File a lien if you are the home mortgage lender and you did not find a lien with the title records. In most cases, a mortgage ends up unsecured and no lien is in place because of an oversight on the part of the lender. The register of deeds office maintains a standard lien form for you to use. The lien itself includes the name of the property owner, the name of the lender and the legal description of the real estate.
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Tips & Warnings
The register of deeds office might maintain an Internet portal through which you can undertake a search of title records. Many offices provide this service; call to inquire.
If you are unsure about whether a lien is appropriately in place to secure a mortgage loan, contact an experienced real estate or mortgage attorney to assist you. State and local bar associations maintain lists of attorneys that practice in these areas. Contact information for these organizations is available through the American Bar Association (see Resources).
