reconveyance deed
DESCRIPTION
When you are a homeowner, there will be two instances when you will require a mortgage release: when you have completely paid off your home and when you are no longer able to pay it off. When you have paid off your mortgage, you are now the free-and-clear owner of your residence. The lender, whether it is a bank or private corporation, no longer holds an interest in your property and their name needs to be removed from the deed and associated paperwork. In the event that you are no longer able to pay for your home, possibly due to job loss, a change in family structure, such as divorce, or for any other reason, you will require a mortgage release to remove your own interests in the home. Doing this allows you to essentially give the home back to the bank or lender and avoid the foreclosure process. While this is never the most ideal situation, it is definitely making the best of a bad situation as it helps you avoid severe negative marks on your credit. Whenever you are in need of mortTRANSCRIPT
Reconveyance Deed
If you purchase a home using bank or private party financing, the technical owner of the property is the
lender. It is not until you pay off your debt – or mortgage – that complete ownerships of the home
transfers to your name. This transfer happens with the issuance of a reconveyance deed.
While the bank should automatically issue one when you have paid off your mortgage, they may not
always do so. If you don’t receive one, you shouldn’t wait around to see if the bank will eventually file
for one. Instead, you should initiate the process for a reconveyance deed on your own.
In addition to enjoying the benefit of being able to say that you own your home free and clear, a
reconveyance deed is an important document that will be necessary anytime you’d like to use your
home as collateral. It will show a new lender that there are no outstanding loans against the house.
If you’re in a need of a reconveyance deed, you can try to handle the process on your own by printing
out crude applications and forms off the internet. A better option is to contact a real estate or financial
services company and allow them to handle the legwork on your behalf.