Title History Issue

What is the problem with the title history of the parcel of land?

The closing attorney found a security deed to the first national bank from Smith, the owner at the time, but did not see any document canceling the mortgage. What is the problem?

Answer:

The problem is that there is a security deed to the bank but no document canceling the mortgage.

The problem in this scenario is that there is a security deed to the first national bank from Smith, the owner at the time, but the closing attorney does not see any document canceling the mortgage. This means that the mortgage is still in effect and the bank has a claim on the property as collateral for the loan. Without a document canceling the mortgage, the bank's rights are still valid and it can pursue collection if the loan is not paid.