Full Reconveyance - State Of California

What is Full Reconveyance - State Of California?

Full Reconveyance is a legal term used in the State of California to describe the process of transferring ownership of a property from a lender, typically a mortgage or trust deed holder, back to the borrower. It is an important step in the real estate process as it signifies that the borrower has successfully paid off their loan in full. This document proves that the lender no longer has a legal claim or lien on the property.

What are the types of Full Reconveyance - State Of California?

There are two main types of Full Reconveyance in the State of California:

Voluntary Full Reconveyance: This occurs when the borrower completes all the necessary payments and requests the lender to issue a Full Reconveyance.
Involuntary Full Reconveyance: This happens when the borrower defaults on their loan and the lender takes legal action to foreclose on the property. Once the foreclosure process is complete, the lender issues a Full Reconveyance.

How to complete Full Reconveyance - State Of California

Completing a Full Reconveyance in the State of California requires the following steps:

01
Obtain a copy of the original loan agreement or trust deed.
02
Ensure that all loan payments, including interest and fees, have been made in full.
03
Contact the lender and officially request a Full Reconveyance.
04
Provide any necessary information or documentation requested by the lender.
05
Pay any fees or expenses associated with the Full Reconveyance process, if applicable.
06
Once the lender approves the request, they will prepare the Full Reconveyance document.
07
Sign the Full Reconveyance document in the presence of a notary public.
08
File the signed Full Reconveyance document with the appropriate government office, typically the county recorder's office.
09
Keep a copy of the Full Reconveyance document for your records.

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Questions & answers

Once the loan amount has been paid in full, California requires lenders to execute a deed of reconveyance within seventy-five days after the debt has been paid.
In a nutshell, the Substitution of Trustee and Deed of Reconveyance is a legal document that evidences security interest is being release by a lender. In most cases, the document shows that a loan has been paid off. Property owners may even receive this document if they have refinanced a loan.
A substitution of trustee simply names a new person to take over that position, as well as a secondary trustee if necessary. A substitution of trustee and full reconveyance serves two purposes: It enables a lender (such as a mortgage company) to appoint a new trustee. It allows the new trustee to release the lien.
The Reconveyance Process Once you've repaid your loan in full, your lender contacts the title company to issue a deed of reconveyance. Depending on local laws, this must happen within 3 – 4 weeks of your final payment.
A document known as a substitution of trustee and full reconveyance identifies the person who has the authority to reconvey the property and remove the lien. Most importantly, a deed of full reconveyance, known as a satisfaction of mortgage in some states, transfers title back to the borrower.
When a deed of trust/mortgage is paid in full, you can record a Full Reconveyance from the trustee stating publicly that the loan has been paid. The Full Reconveyance Form is completed and signed by the trustee, whose signature must be notarized.