Lecture Summary: Discharging Mortgage Debt

Introduction

• Presenter: Sylvester Moore-Eal
• Platform: THCTrust.org
• Subscription: $225/year or $32/month for access to templates and materials discussed

Key Topics Covered

Banker's Draft and Debt Discharge

• Previous Discussions: Preparing a banker's draft, tendering for payment, IRS 1099 reporting, notary presentment, and protest.
• Current Focus: Moving forward even if initial steps are not honored.

Importance of Perfecting Records

• Continuously perfect and move forward with discharge records.
• Notary protest provides evidence of discharge.
• Role of government records and affidavits.

Process of Discharging a Mortgage

Understanding Parties Involved

• Billing Party: Servicer or beneficiary under the deed of trust/security deed/mortgage deed.
• Trustee's Role: Administering and fulfilling obligations of the trust instrument.

Notary Protest and Evidence

• Electronic Notary: New technology used for creating and presenting banker's drafts.
• 1099 Reporting and Government Records: Constitute as evidence.

Communication and Affidavits

• Keep communication concise, preferably in affidavit form.
• Affidavits can qualify as evidence if unrebutted.

Notice of Substitution and Appointment of Successor Trustee

Document Logic and Purpose

• Notice vs. Affidavit: A notice can be given by affidavit.
• Role of Trustee: They may be removed or substituted based on trustor's evidence.

Hypothetical Situation

• Contacting the Trustee: Ensure the correct name and title as per the deed.
• Trustor's Rights: The document argues for the right to appoint a successor if obligations are fulfilled.

Self-Executing Deed

• Affidavit as Notice: To be recorded, cross-reference requirements must be met.
• Interaction with Trustee: Trustee should act upon evidence or risk removal.

Interaction with Legal and Court Systems

Legal Rights and Obligations

• Irrevocable Trusts: Trustee substitutions do not relate to the revocability of a trust.
• Trustor's Role: Acts as a guardian, ensuring obligations are met.

Role of Title Insurance Company

• Successor Trustee: Selected due to their capacity to release a mortgage lien.
• Title Company and Legal Actions: May need to sue for breach of trust if obligations are not satisfied.

Conclusion

• Final Thoughts: This process involves setting a clear legal groundwork and being prepared for potential court interactions.
• Subscription Information: Encouragement to subscribe to support further content creation.