[quote=Essbee]But shouldn’t the fact that the loan/lien is paid off be noted in public records as well?
If not, it seems like this method would WAY overestimate the number of people who are “underwater”.[/quote]
Yes, but there is a 2-week to 3-month “lag time” between paying off a mtg and the lender filing a reconveyance. If the borrower took out a HELOC, there is no reconveyance filed if the loan is paid off unless the borrower (or lender) close the (zero-balance) account.
Don’t know if REALIST shows the actual documents filed. If it is similar to WestLaw, it will show the loan amount, lender, and date and recorder filing number of transaction but NOT the terms of the loan. Your realtor friends would then have no way of knowing whether your 2nd TD was paid off if it was a HELOC or if you had just paid it off within a couple of months of calling them for a listing appt.
