Understanding the Problem
A homeowner or buyer may need to confirm whether a property has one mortgage, two mortgages, or another type of lien and identify the parties behind each claim. The question often arises when a title company reports “two mortgages,” the owner does not recognize one of them, and the company sends an authorization form so it can verify information with the lenders. The first task is to determine what each record actually represents and whether it is still active.
Apply the Law
North Carolina maintains public records affecting real property in more than one county office. Deeds of trust and related land instruments are generally searched through the Register of Deeds, while certain liens and foreclosure proceedings are filed or docketed through the Clerk of Superior Court. A title search connects these records to the correct owners and parcel and checks for assignments, satisfactions, releases, and court filings that may affect the status of a lien.
Key Requirements
- Identify the correct property and owner names: Use the parcel address and legal description, and search current and prior owner names to reduce the risk of missing an older instrument.
- Review the documents, not just the index: Obtain the deed of trust, any assignments, any satisfaction or release, and relevant foreclosure filings. These documents may provide the lender’s name, recording information, and filing date.
- Confirm the current payoff contact: The original deed of trust may not identify the current loan servicer or the party presently handling payoff requests. That information may require direct verification using an appropriate authorization.
What the Statutes Say
- N.C. Gen. Stat. § 161-22 (Index of registered instruments) – Requires the Register of Deeds to maintain indexes covering liens, deeds, mortgages, and other registered instruments. It also permits deeds of trust to be indexed under the grantor and beneficiary names.
- N.C. Gen. Stat. § 161-22.1 (Index and cross-index of immediate prior owners of land) – Requires additional grantor indexing when specified conveyances by trustees, mortgagees, court-appointed officers, or sheriffs identify the persons whose interests are being conveyed.
- N.C. Gen. Stat. § 45-21.16 (Notice and hearing) – Requires a mortgagee or trustee pursuing a power-of-sale foreclosure to file a notice of hearing with the clerk of court. The notice identifies the security instrument and the holder at the time of filing.
- N.C. Gen. Stat. § 45-21.17 (Posting and publishing notice of sale of real property) – Establishes posting, publication, and mailing requirements for a foreclosure sale notice.
- N.C. Gen. Stat. § 44A-12 (Filing claim of lien on real property) – Requires claims of lien covered by that statute to be filed with the Clerk of Superior Court in each county where the affected property is located and indexed under the record owner’s name.
Analysis
The title company’s report of “two mortgages” likely means its search found two deeds of trust or a deed of trust and another lien associated with the property. Because the owner does not recognize the second item or the named parties, copies of the underlying documents should be reviewed before assuming that two active loans exist. One item could be a second deed of trust, a home equity line, another kind of lien, or an older obligation for which no satisfaction or release is readily shown.
Process & Timing
- Search the appropriate county records: Check the Register of Deeds for deeds of trust, assignments, and satisfactions or releases. Check the Clerk of Superior Court for applicable lien and foreclosure records.
- Identify the second item: Pull the complete document and determine whether it is another deed of trust, a home equity line of credit, a claim of lien, or an older lien that may have been paid but not properly cleared from the record.
- Trace later activity: Review subsequent assignments, satisfactions, releases, and relevant court filings by their instrument, book-and-page, or file references.
- Verify the current contact and balance: If the public record does not establish the current servicer or payoff status, use a properly limited authorization to request verification from the lender or servicer.
Clock to watch: If a sale, refinance, or payoff is pending, begin the search and payoff requests immediately. Response and release times can vary by lender and county, and an unresolved lien can delay closing.
Exceptions & Pitfalls
- Paid loan but no release found: A prior mortgage may still appear if a satisfaction or release was never filed or was indexed in a way that makes it difficult to locate.
- Assignments and servicing changes: A deed of trust may identify the original lender even though another party now services the loan or handles payoff requests.
- Name variations and prior owners: A search using only the current owner’s name or street address may miss instruments indexed under a different name spelling or a prior owner.
- Different record systems: Not every lien is found solely in the Register of Deeds records. Certain claims and foreclosure proceedings must also be checked through the Clerk of Superior Court.
- Authorization scope: Review who may obtain information, which accounts are covered, what information may be requested, and how long the authorization remains effective. Avoid signing an unnecessarily broad authorization.
Conclusion
North Carolina county records can confirm whether a house is subject to two deeds of trust or another recorded or docketed lien, but the underlying documents must be reviewed to determine what each item means. The key threshold is whether the records show an active obligation, an assignment, or a satisfaction or release. Obtain the relevant documents from the Register of Deeds and Clerk of Superior Court, then use a properly limited authorization to verify the current servicer and payoff status if necessary.
Talk to a Real Estate Attorney
If there is confusion about two mortgages, another lien, or the identity of a lender, a North Carolina real estate attorney can review the records and help address release, assignment, and timing problems. Call (919) 341-7055 to request a free case evaluation.
