The moment a borrower pays off their loan is a momentous occasion for a lender. Once a loan is closed, your business has gotten the full return on its investment without having to pursue the complicated and often stress-inducing task of enacting a foreclosure. As important as paying off a loan is for your team, it is equally important to your borrower. Issuing a borrower’s reconveyance in a timely manner is the best way to serve them well as they finish doing business with your team.
At Total Lender Solutions, we have been helping lenders transfer property ownership by issue reconveyances for over fifteen years. Although the process may seem like a formality, it is hugely important to your customers. If your team does not have the internal power to issue reconveyances, our team has resources to aid your operations.
Read below to learn more about the importance of reconveyance in commercial properties
What Role Does Reconveyance Play in Commercial Real Estate?
Reconveyance is important to commercial real estate because it is the process of transferring the deed of trust to the borrower after the loan amount on the property has been paid in full. In states where a third-party trustee holds the deed of trust, it is the lender’s responsibility to alert the trustee, who then transfers the deed to the new owner, and files a deed of reconveyance with the county court.
Deeds of reconveyance may also be issued in the case of refinancing, where the document shows the new lienholders that the previous lienholder has been paid.
It is important for lenders to keep in mind that the property belongs to the borrower the moment they pay off their loan, even if the reconveyance has not been filed. However, if it is not officially filed, or if there are errors in the filing, it may create title issues. The new owners may have difficulties selling the property or making other deals.
Deeds of reconveyance will typically include:
- The name and address of the borrower
- The name of the lender
- Information about the property, including parcel number and a description of the property
- Details of the trust deed and documentation that the property loan has been paid in full.
What to Do if You are a Lender Faced With a Reconveyance
Issuing reconveyance correctly and in a timely manner is a crucial part of maintaining good relations with your customers. If your lending team does not have the time, knowledge, or internal power to issue these documents, let Total Lender Solutions act as an extension of your team instead. Our years of experience in seven states means that we can help your team avoid the potential legal troubles that can occur if a deed of trust is not transferred properly.
Our team has helped hundreds of clients take care of property ownership issues, from issuing foreclosures to UCC sales and beyond. If you need assistance with your reconveyance, don’t hesitate to contact our team by filling out our contact form.
