When a borrower pays a loan in full, it is the responsibility of the lender to issue a reconveyance to indicate satisfaction of the mortgage. A deed of reconveyance provides documentation that the lender acknowledges the property is now in the possession of the previous borrower; this document must be sent to escrow or the appropriate county recorder in a timely manner. While issuing this document may seem like a distracting formality to lenders, failing to do this process effectively can lead to expensive consequences, like statutory penalties or actual damages suffered.
Lenders wanting to keep their team on track might choose to outsource the reconveyance process to a trustee partner like Total Lender Solutions.
Related Blogs: When Must Lenders Issue a Deed of Reconveyance in San Bernardino County?
Four Reasons to Outsource Your Reconveyance Process
Lenders can benefit from outsourcing their reconveyance process for several reasons:
Keep Your Team on Task
For many small-to-medium lenders, it is better to invest in a partner to handle small but important tasks like reconveyances. Your team of lenders has plenty on their plate dealing with their customers’ borrower accounts and addressing their specific needs. Hiring a partner ensures that your team can continue to handle current borrowers without taking time away to file reconveyances.
Save Time
For lenders who rarely issue reconveyances, the learning curve for filing one can be steep. A trustee firm has the expertise and resources to file a reconveyance quickly, meaning that your team has no chance to suffer the penalties of missing or delaying delivering the required documents.
Have a Professional Partner
A trustee firm is intimately familiar with the processes involved in transferring a deed of trust from one hand to another, whether that be through reconveyance, through an estate sale, or through foreclosure. We offer ongoing services to ensure that your team is never in the dark about new compliance and industry knowledge. As a lender, having an expert by your side is a relief and resource for your most complex and stressful tasks.
Compliance Concerns
Many states have strict and detailed compliance requirements to protect both borrowers from malicious lending practices and to protect lenders from extemporaneous lawsuits. Failure to comply with state and federal law during the reconveyance process can mean an incredible financial loss for lenders in several areas. A trustee firm can guide lenders through this process and keep your team educated on foreclosure law.
The Premier Foreclosure Firm for California, Texas, Nevada, Arizona, Missouri, Oregon, and Washington.
At Total Lender Solutions, we advocate for lenders looking to maximize recoveries on defaulted loans. For over 15 years, our team of highly experienced real estate professionals and legal experts has transformed complicated processes into clear resolutions for institutional and private lenders. We work as a vigorous extension of your team to provide comprehensive solutions and seamless communication, from pre-foreclosure and notice of default to the final sale phase. Our dedication and persistence when it comes to the foreclosure process ensure that our clients feel confident in reaching a successful outcome. Contact us today.
