Friday, December 17, 2010
Can you void a deed of trust (security) that has been split from the note?
As I stated numerous times to clients and attorneys alike, I believe that the "split note" theory is a loser 99% of the time, at least in most states, including Virginia (because most states do not require mortgage assignments to be recorded). However, in certain instances it is possible to truly "split" the deed of trust from the note and render the note unsecured. Our sister jurisdiction DC has such a case. I am posting it here in hopes that maybe some homeowners or attorneys will find it helpful in their particular situation.