The Significant Guide To Deed Of Reconveyance One Must Know
The Significant Guide To Deed Of Reconveyance One Must Know
Abstract
About Deed Of Reconveyance When you take out a mortgage to buy a house through a bank or a lender, the bank or the lender owns the property till the mortgage is paid in full. What happens if you pay off the mortgage? Well, once you pay off the mortgage, you will receive a document from the lender known as a deed of reconveyance. What Is A Deed Of Reconveyance? A reconveyance deed is a document that is provided to the borrower by the lender or the bank, once the borrower pays off the mortgage loan in full. How Does A Deed Of Reconveyance Work? Once the borrower takes out a mortgage, he signs a deed of trust with the lender or the bank which states that the bank or the lender has a security interest in the property and puts the title of the property in trust with a trustee as a beneficiary. The deed of trust holds until the reconveyance deed is brought into execution. The deed needs to be signed by the trustee holding the deed of trust and has to be notarized. Once the lender provides the deed, the lender cannot foreclose on that property.
