Once a borrower has paid off their loan in full, a deed of reconveyance (also known as a full or partial reconveyance) must be issued by the lender. San Bernardino County, like the rest of California, uses deeds of trust as their primary security instruments, in lieu of mortgages. Deeds of trust are removed by deeds of reconveyance.
What is a Deed of Reconveyance?
Deeds of reconveyance remove deeds of trust from the public record; it transfers the title of a property from the trustee named in the deed of trust back to the borrower or property owner.
Deeds of reconveyance are infinitely precious to trustors. Borrowers are free of their obligations to their lender once their amount has been paid in full, with or without the deed. However, sometimes buyers demand to see the document in order to purchase the property. Trustors may seek out the deed if they mean to sell the property.
What Happens if I Don’t Issue a Deed of Reconveyance?
Once the loan amount has been paid in full, California requires lenders to request within 30 days after the loan has been paid off that the trustee executes a deed of reconveyance, which must be completed by the trustee within 21 days of the lender’s request. If the lender fails to provide the borrower with a deed of reconveyance, problems can arise for the trustor. A lien may appear in public records, which can make the property difficult to sell. California issues penalties against the lender for failing to provide a reconveyance deed.
If the failure to deliver the deed of reconveyance results in financial or emotional hardship, non-state entities can file lawsuits brought against lenders.
Issuing a Deed of Reconveyance in San Bernardino County, CA
In San Bernardino County, issuing reconveyances to officials in a timely manner is crucial. However, small and medium sized lenders issuing reconveyances for the first time may find that navigating the process is difficult and timely. We’ve assisted clients with their reconveyance processing, and we can help you so that you can instead focus on your customers.
Keep Your Team Educated About Foreclosure Law
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 ensures that our clients feel confident in reaching a successful outcome. Contact us today.
