TE, like all (most?) of Apples apps manage documents for you. They auto save, auto version, etc. I love the paradigm. I love how painless it works for me. I love not having to decide anything when the app closes (say during a restart), or even during a crash. Just hit close, everything goes away, and comes back when you open again.
My TextEdit opens with 47 documents, cleverly named "Untitled" to "Untitled 47". Some of those are most certainly years old. TE is my computer scratch paper, and things just, well, linger.
These files "do not exist" on my computer, they're in Apples document enclave. That's OK. I know where they are.