The deed of reconveyance is one of those real estate terms many people don’t know, but it is still crucial for homeowners to understand.
Property owners use a deed of reconveyance to transfer property from a lender to a borrower after paying off their mortgages. If you’ve ever had a mortgage, then it’s essential to understand what a deed of reconveyance is.
This article explains how a deed of reconveyance works and what you need to know about them. If you want to learn more about obtaining a home-purchasing loan in Tucson, call our team at Altitude Home Loans at 520-500-1010.
How Does a Deed of Reconveyance Work?
When you take out a mortgage, you borrow money from a lender. Once you’ve fully paid your mortgage loan, your lender will issue you a deed of reconveyance. This document confirms that your title now belongs to you, the borrower.
Having a deed of reconveyance is crucial if you want to sell your home in the future. Real estate agencies and prospective homeowners alike can do a title search on your property, looking for relevant legal documents. If you have a deed of reconveyance, they’ll know that your home is no longer at risk of foreclosure.
If you ever need a new mortgage, you’ll receive another deed of reconveyance confirming that you paid off your previous mortgage. It’s important to keep in mind that deeds of reconveyance vary from state to state. For example, some states prefer to use satisfaction of mortgage documents, but these are the same in all but name.
Parts of a Deed of Reconveyance
A standard deed of reconveyance includes the following:
- The name of the lender
- The name and address of the mortgage borrower
- Property description and post office information
- Proof that the borrower has paid their mortgage in full
- Lines for signatures from all parties and a third-party notary
Any deed of reconveyance document missing one or all of these pieces is invalid. Ensure that your deed of reconveyance document follows relevant standards for your state. If you have any questions about your financial obligations, don’t hesitate to contact your local mortgage professionals.
What Happens with Incorrectly Filed Deeds of Reconveyance
Erroneous or non-existence deed of conveyance documents cause title issues. A homeowner who lacks a proper deed of conveyance will have a hard time selling their property. Check with your local county record’s office to ensure you have a proper deed of reconveyance on file.
What Is the Difference Between Conveyance and Reconveyance?
Conveyance refers to the transfer of property ownership from one party to another. Additionally, conveyance requires a deed that outlines the parties involved and the property in question. However, reconveyance refers to transferring a property title between a lender to a borrower.
Professional Mortgage Services in Tucson, AZ
If you need a deed of reconveyance for your Tucson home, look no further than Altitude Home Loans. Our team knows all about the mortgage process steps and can gladly help you along your mortgage journey. Contact us today to speak to one of our certified mortgage professionals in Tucson, Arizona, by calling 520-500-1010.