Obligee Lost Deed of Trust and Note and/or Lost Deed of Trust Bond
Know the reason why this surety bond is required and how to get one!
What is an Obligee Lost Deed of Trust and Note and/or Lost Deed of Trust Bond?
It is a protection tool provided by the trustor (you) to the trustee. You need to obtain and submit this surety bond to the trustee for the reasons stated below:
- If you are requesting for the Deed of Trust to be released because the debt has been paid, but the said Deed of Trust or Promissory Note has not been surrendered to the Trustee by the person who is claiming to be the beneficiary.
- The beneficiary cannot be found.
- The Deed of Trust or any evidence of indebtedness has been lost, misplaced, or destroyed.
- The Deed of Trust was not endorsed, assigned, transferred, pledged, or hypothecated, but the Principal remains the legal owner of the indebtedness of the said Deed of Trust.
The purpose of this surety bond is to protect the trustee in case another person files a claim in the future. This will also ensure that the Deed of Trust will be turned over to the trustee for retention and cancellation if found.
How does an Obligee Lost Deed of Trust and Note and/or Lost Deed of Trust Bond work?
This bond is a legal contract between the Principal of the bond (Trustor), the Obligee (Trustee), and the Surety or the surety bond provider.
The Principal will be the party who will obtain the bond. The Surety will guarantee to the Obligee that what the trustor’s claiming is indeed correct; and that if any claim happens, the Surety will indemnify the Obligee.
If the claim is valid, the Surety will settle the claim up to the face value of the bond. The Principal will then repay the Surety once the Obligee has been paid.
How much does an Obligee Lost Deed of Trust and Note and/or Lost Deed of Trust Bond cost?
The bond cost will depend on your credit score. For those who have excellent credit scores, the bond cost will typically be 0.5% to 1% of the bond amount.
The bond amount will be based on several factors such as the amount of the loan.
Do you want to know your bond premium right now? Get your FREE SURETY BOND QUOTE RIGHT HERE
How can I get an Obligee Lost Deed of Trust and Note and/or Lost Deed of Trust Bond?
STEP 1: You must first apply for this type of surety bond. If you are ready to do that now, you may APPLY HERE!
Once we have received your application, we will immediately start the bonding process. We will inform you about the important documents that you need to submit for the next step, which is the underwriting process.
STEP 2: An underwriter will take a thorough look at the following:
- Your financial strength
- Your job performance history
- Your credit score
STEP 3: After the underwriting process is done, you will be asked to sign the indemnity agreement. After that, the bond will be issued and sent to you.