Lost Note/Deed of Trust/Reconveyance Bond
Overview
California civil code 2941.7 allows property owners to use a surety bond to clear an old, paid-off mortgage lien from a property’s title when the original lender cannot be found. The amount of the bond required is 2x the original note amount.
Cost of Bond
The premium for the bond is 1.5% for the first $100,000, and 1.25% for any amount greater than $100,000. By way of example, the following bond amounts require the premium amounts below:
| Original Note Amount | Bond Amount | Premium (One-Time) |
| $50,000 | $100,000 | $1,500 |
| $100,000 | *$200,000 | $2,750 |
| $500,000 | *$1,000,000 | $12,750 |
*Underwriting Requirements (Documentation Required):
- All bond requests require a preliminary title report, completed and signed application (including indemnity agreement), and an explanation on the history of the note being bonded.
- Bond amounts greater than $150,000 require the principal to qualify with a satisfactory credit history and provide a personal financial statement. Any accounts listed on the personal financial statement greater than $25,000 require accompanying bank statements.
Bond Form Summary:
The California lost note/deed of trust/reconveyance bond protects the title company or lender if the original lost note is found or the beneficiary tires to collect on the debt. The surety bond is needed when a title search shows an open, unreleased mortgage lien that blocks a sale or refinance of a property.
- Principal: Property owner
- Obligee: Financial institution
- Surety: Insurance company guaranteeing the bond
- Bond Amount: 2x (times) the original note amount
- Bond Term: 3 years (Does not need to be renewed)
Get Your Lost Note/Deed of Trust/Reconveyance Bond Today
You can get a California lost note and trust deed bond from NNA Surety. Call us at 855-575-1063 or complete our form to get bonded today.