New Blog 1: Reconveyance Of Mortgage

Wednesday 12 December 2012

Reconveyance Of Mortgage

Legally, a mortgage is the loan you took out to buy your home but the lien the lending company holds on your property in case you default. When the loan is finally paid off, the lender delivers a document to the borrower giving him the title free of the lien. This is what known as reconveying the mortgage. In some states, lenders reconvey a mortgage by using a Satisfaction of Mortgage document, In other states including California, the document is a Deed of Reconveyance. The process is referred to as reconveying a mortgage, even in states such as California, where the lien is secured by a deed of trust rather than a mortgage. 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. In a trust deed state, the reconveyance form will also identify the trustee, who holds the title to the property for safekeeping.