New Blog 1: Full Reconveyance Definition

Wednesday, 12 December 2012

Full Reconveyance Definition

Reconveyance in those states which use deeds of trust as a mortgage on real property to secure payment of a loan or other debt, the transfer of title by the trustee (which has been holding title to the real property) back to the borrower (on the written request of the borrower) when the secured debt is fully paid. Under the deed of trust the borrower transfers title in the real property to the trustee (often a title or escrow company) which holds it for the benefit of the lender (called "beneficiary"). The lender must surrender the promissory note to the trustee who cancels it and then reconveys title and records the reconveyance. Full reconveyance is a mortgage concept used in title theory states, where the borrower transfers title to the real property to another,usually a trustee,and is entitled to full reconveyance,or a return of the legal title,when the debt has been paid in full.