In commercial real estate, the end of a loan can be a means of celebration for both the lender and the borrower. For the lender, it means they can get a full return on their investment, and for the borrower, it means that they become the owner of the property in which they have invested. This transfer of ownership is completed during the reconveyance process.
The team at Total Lender Solutions has helped hundreds of lenders manage their assets by assisting in reconveyances. When lenders understand their responsibilities and transfer ownership in a timely manner, they avoid penalties and bad faith.
Read below to learn more about the reconveyance process for commercial lenders.
Understanding the Reconveyance Process for Lenders
In commercial real estate concerning properties secured with a deed of trust, the deed is held by the third-party trustee until the property changes ownership. Once a borrower pays off their loan, lenders are obligated to remove the deed from public records and return ownership to the borrower — this is known as reconveyance.
It is often crucial for the borrower to have the deed removed from the public record because it may be difficult for them to make additional business transactions regarding the property without the reconveyance process being completed. Liens can sometimes remain on record and will be revealed in title reports or preliminary title searches without the reconveyance.
To complete a deed of reconveyance, the lender contacts the third-party trustee named the deed of trust back to the borrower or property owner. The trustee then executes and delivers the deed of reconveyance to the trustor.
Related Article: Deed of Reconveyance: What Lenders Need To Know
Reconveyance Assistance in Seven States
If you are a lender needing to complete a reconveyance, oftentimes, your third-party trustee may not have the experience to complete a reconveyance on their own. The team at Total Lender Solutions works side by side with your team to transfer the ownership of the property to bring the loan to a satisfactory conclusion. We have over fifteen years of experience in commercial real estate across seven nonjudicial foreclosure states.
For more information on lending inspections, don’t hesitate to contact our team by filling out our contact form.
