Seller carryback note almost wrecked my bridge loan in Austin

I was closing a $340k bridge loan last month and the title company flagged a private seller carryback from 2019 that had no recorded payoff release. The original lender sold the note twice and nobody could produce the assignment chain, so the lien sat there threatening to kill the whole deal. Has anyone else had to chase down an unrecorded note assignment, and what did you use to force the release?

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emmaallen24d ago

Dealt with this exact mess on a deal in Round Rock two years back. The note had been sold three times and the last holder was a guy in Florida who didn't even know he owned it. What finally worked was getting a lost note affidavit from the current holder plus a title indemnity letter, and the title company agreed to insure over it. If the holder is still alive and reachable, you can also push for a quiet title suit but that takes months and your bridge lender won't wait. Check the county clerk records yourself for any old assignments because sometimes they got recorded under a slightly different legal name and the title searcher missed it. Worst case, escrow a holdback for the lien amount and let the deal close while you sort out the release after.

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