New Blog 1: Reconveyance Deed

Reconveyance Deed

Reconveyance deed is the mortgage by conveyance (aka mortgage in fee) or, when written, the mortgage by charter and reconveyance and took the form of a feoffment, bargain and sale, or lease and release. Since the lender did not necessarily enter into possession, had rights of action, and covenanted a right of reversion on the borrower, the mortgage was a proper collateral security. Thus, a mortgage was on its face an absolute conveyance of a fee simple estate, but was in fact conditional, and would be of no effect if certain conditions were met. A deed of reconveyance is used in title theory states that employ a deed of trust as the security instrument for the loan. Once the loan is paid in full, the deed of reconveyance is recorded to release the lien from the property. About half of the country records deeds of trust and the other half records mortgages, but both types of documents protect the lender's interest in the property.