Finance
When an Oklahoma lender conducts a title search and finds a prior recorded deed of trust that was never released, the lender should:
AIgnore it because loans are automatically released after 10 years
BRequire a release of lien or reconveyance from the prior lender before funding the new loan, or obtain title insurance that covers the risk✓ Correct
CFund the loan immediately and deal with it later
DFile a complaint with OREC
Explanation
An unreleased prior deed of trust is a title defect that must be cleared before a new lender will fund. The prior lender must execute a reconveyance or release of lien to show the debt was satisfied and the lien released. Title insurance may cover some risks.
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