Definition of Reconveyance of a Mortgage
What are your offices hours? Any prospective borrower who specifically asks for a true mortgage from a commercial lender in such a state necessarily brings his or her creditworthiness into question since if they were confident in their own ability to repay the loan, they would not need to make such a request , and any rational lender willing to extend credit to less creditworthy borrowers will insist on harsher terms, including the use of a deed of trust with a "power of sale" clause.
Legally, a mortgage isn't the loan you took out to buy your home but the lien the lending company holds on your property in case you default.
Property Reconveyance Frequently Asked Questions
What if the Trustee or the lender beneficiary do not fulfill their duties? Personal Finance. Before jumping on a teaser rate to refinance, it might make more sense to consider the additional years that are being added to your mortgage or opt for a shorter amortization period.
A deed of reconveyance includes such information as the name of the lender and borrower, the address and legal identification of the property, the size of the loan, the date it was recorded and where in the county records it can be found.
The Deed of Reconveyance
Please advise. Many homeowners are attracted to loan programs that either lower the interest rate or extend the amortization period or a combination of both , which also results in a lower monthly payment. By Elizabeth Weintraub.
A deed of trust has a crucial advantage over a mortgage from the lender's point of view. The Trustor is the debtor, the purchaser of the property. Generally, a property should have a reconveyance on its title for every loan that gets paid off. Second, if the full reconveyance has not been executed and recorded despite you making all the payments and writing the aforementioned request to the lender, then 75 days after the last required loan payment was made you may have a title insurance company record a release of the obligation.
In reality, an escrow holder is always used so that the transaction does not close until the escrow holder has the funds, grant deed, and deed of trust in their possession. If the deed of reconveyance is lost or destroyed, it creates a title nightmare and puts a cloud on the title because there is nothing to show that the loan has been paid.
After it has been signed and notarized, it should be filed at the land records office in the county where the property is located. How do I find the Trustee?
Who is the Beneficiary? The consideration entered on a deed document and it should be the actual value paid by the lender to the borrower in monetary terms. However, given the flurry of refinance loans in for the last 10 years, it became common that lenders, trustees and title companies would fail to request and record the Deed of Reconyance.
District Court with a notarized letter s stating specifically the new address to which the reconveyance documents should be mailed.
In essence, the Deed of Reconveyance and Satisfaction of Mortgage both serve the same function, which is to show that the borrower has repaid the loan fully and that the lender has no further interest in the property. That if a partial reconveyance was never filed, the property foreclosed sold to a new owner. Situations in which the reconveyance was not recorded are more common than you might initially assume.
Escrow Reconveyance of the Deed of Trust San Diego Escrow Company Inc
If the property owner provides the U. The lender must surrender the promissory note to the trustee who cancels it and then reconveys title to the borrower and records the reconveyance. Get Started. In order to pick up my reconveyance documents in person, what are your requirements? ShareThis Comments are closed. Reconveyance is a term used in some states which use deeds of trust as a mortgage on real property to secure payment of a loan or other debt.