Recently a colleague told me harrowing story about how he was delayed from selling his house due to a bizarre statutory requirement. How many of you loyal Jurisco Surety Bond blog followers have ever heard of Reconveyance? Ok, don’t answer, some of you are probably attorneys or other Surety Bond blog authors. But for those of you not already braised by the sharp heat of legal and lending esoteria . . . see if you can follow along while I reconstruct a story told to me by a California Title Attorney.
So, my friend inherited a house from his parents in Los Angeles, California and since he had no use for it as a rental property he wished to sell it. As far as he knew the title was clear. Evidently not so. He soon learned that the selling process was being held up because his parents, although having paid off two debts related to house in the 1970’s, had never actually received the Reconveyance (also known as the trust deed or the deed of trust) This is proof that the debt has been fully satisfied. Without one it creates a title chaos and puts uncertainty on the title because there is no official document that shows loan has been paid. This should be simple, right? Just call the bank and ask for the appropriate paper work. Evidently not so simple. Both lending organizations were no longer in business and, after much searching, all my friend could find of these companies were the descendants of the company owners. The omissions of our forebears were having a very real impact on the lives of their kin. These descendants could still legally provide the reconveyance documents and trust deeds but they then take on a risk issuing the documents out of the blue because of the high risk of fraud. An immovable impasse, right? Evidently not so. Because my friend, the one seeking the reconveyance, could procure a surety bond (named Reconveyance Bond or trust deed bond or deed of trust bond) that would protect the lender or the agent of the lender from fraud or illegal actions perpetrated by the party requesting the Reconveyance.
The Reconveyance bond (deed of trust bond or trust deed bond) are the only instruments protecting institutions and individuals alike from lawlessness, fraud and the kind of irresponsible record keeping that can only result from feckless nepotism. The Surety Bond experts at Jurisco know this and are always there to answer your questions about reconveyance bonds, other surety bonds or how to make California a better place through fine accounting and contractual accountability. Contact of their knowledgeable and friendly staff members today.
Imagine this scenario: a couple is preparing to sell their home when they receive a call from their realtor. The real estate agent says the sale of the house is being blocked because they cannot find a deed of reconveyance. “What is a deed of reconveyance?” the couple asks. “It’s proof the house is yours,” the realtor replies. Now what? Well, now they need a surety bond.
A Deed of Reconveyance
A deed of reconveyance is received when a debt is paid off, such as paying the last mortgage payment on a house. With a deed of reconveyance, ownership of the property is transferred. Without this deed, the mortgage company still technically owns the property. This can lead to blocking the sale of the property, or expensive tax issues.
Generally, a mortgage company mails a deed of reconveyance within 30 days of the last payment clearing. However, it isn’t uncommon to have to call and remind the mortgage company to send over the deed of reconveyance. This Washington Post common title problems article covers this issue pretty well.
Now, there are some situations where tracking down a deed of reconveyance can be difficult. For instance, a house that has been passed down from generation to generation and now being sold to the public may lack the proper documentation. That’s when using a surety bond can help because it clears up what is a deed of reconveyance issue.
Surety Bond Solutions
Working with a surety bond expert at Jurisco is a fast way to find a solution to a deed of reconveyance problem. Jurisco is a nationwide surety bond company so they can offer expert advice and low surety bond rates.
Jurisco is ready to help you understand what is a deed of reconveyance. Contact Jurisco today with any questions about a reconveyance and the surety bonds you need to clear up an issue.
A common surety bond question is, what is a deed of reconveyance and do I need one?
In short, a deed of reconveyance is what a person who pays off a mortgage must receive from the lender (mortgage holder) to prove final payment was made.
A more detailed answer to what is a deed of reconveyance is that it is the transferring of bond responsibility between contracted parties.
Proof Of Satisfying Loan With Bond
Mortgage companies and lenders are required by states to bond the loan and hold that bond until all payments are cleared.
When researching what is a deed of reconveyance one of the first things to realize is its importance. Since the deed of reconveyance bond or deed of trust bond proves the lender transferred the bond to the borrower it is taken in high consideration by the courts.
Every state mandates reconveyances because the what is a deed of reconveyance question is so valuable in holding lenders accountable for their practices.
What Is A Deed Of Reconveyance Bond?
With mortgages and the housing industry in the news people begin to think about their own mortgages. They wonder if everything is alright with theirs. Too often the thought of what is a deed of reconveyance only comes up after it is already a problem.
For example, when kids inherit their parent’s house and discover after their death that they did not receive a deed of reconveyance. Without the reconveyance, proving ownership becomes trickier.
The state of California works to explain what is a deed of reconveyance for property and what can be done in complicated situations like the one above.
A deed of reconveyance bond can also be called a deed of trust. Any loan or mortgage is only properly closed when both know the answer to what is a deed of reconveyance.
The purpose of a deed of reconveyance is that it transfers the bond, the responsibility to the borrower and protects against any fraudulent behavior.
Who Sends The Reconveyance?
After the last payment is made the borrower should expect a deed of reconveyance in 30 business days. Calling, writing or emailing the lender to request the reconveyance is normal.
If the lender refuses or does not comply then there is legal recourse to ensure they do in fact issue the reconveyance without further financial harm.
Jurisco can help answer your what is a deed of reconveyance questions and more. A member of Jurisco’s friendly staff can help make sure a deed of reconveyance is sound and secure.
Bond surety protection goes beyond just meeting state requirements. The peace of mind a surety bond offers gives individuals and businesses the assurance they need to operate.
There are several types of surety bonds used by plaintiffs and defendants including an injunction bond, appeal bond and replevin bond. Businesses use a bond surety to meet bid requirements, state license mandates, and can even cover employee’s’ wrongful actions.
Choosing The Correct Bond Surety Measure
Knowing which bond to employ is very important. Jurisco not only understands requirements for each state, but they can tell which surety bond is best for your situation.
A defendant wishing to seek an appeal and stop the collection of a money judgement until the appeal has time to work its way out will need a supersedeas bond. A plaintiff seeking to garnish wages will need a garnishment bond.
Working with a reputable bond surety company like Jurisco guarantees you can secure the bond you need. The Jurisco staff works with each client to help determine which bond will help them most.
Surety Bond For Any Situation
All states accept a surety bond in some situation or another. There can be a deed of trust in real estate purchases. An individual can even post a release of mechanics lien to replace a lien on property with a surety bond.
Even countries can benefit from using a surety bond. For example, the government of Puerto Rico is considering posting a bond surety to cover debt from their electrical company.
A small business may require a bond surety when they bid on projects, if there business requires bond backing, or to prove they will honor a contract.
It is a lot easier to work with Jurisco and secure a surety bond than to deal with needing large sums of cash on hand. The surety bond frees up resources while offering financial coverage against wrongdoing on the part of the party handling funds or doing the work
Learn About Different Surety Bonds
The surety bond definition page has a good overview of what Jurisco can do. Any questions about a surety bond will be answered by a member of the Jurisco team who is lawyer-trained. They are here to help make sure all your bond surety needs are met.
“Simply put, money can be divided but children cannot” This line, by Jeff Landers on Forbes.com, speaks to the extra layer of difficulty when a divorcing couple have children. The article, however, speaks more to the extra (extra!) layer of difficulty when one member of the divorcing couple has an international passport. (see full post here) Just as the title of the article implies, (Small World, Big Problem: Divorces Involving Dual Citizenship) it may feel like the world is shrinking but the problems created by international divorces seem very big. Hopefully, this article on Ne Exeat Bonds in California will show you that there are other options.
Like the article posits, international divorce problems are very real; this is especially true in a multi-cultural, international, state like California where medium-to high-wealth individuals from all over the world move to seeking high-paying jobs. Divorced parties are concerned (and rightfully so), when their spouse leaves to another country with their children, that it will be be difficult and near impossible to enforce the tenets of the divorce agreement (including custody rights) in a country outside the jurisdiction of the US Department of Justice. They are right for feeling this way. Once outside the US, enforcing laws is not only problematic but very expensive.
Jurisco Court Surety in California is here to present you with a remedy for this situation, however, and more and more parents are seeking it in order to quell their fears regarding international divorce and custody rights. In Family Law this is such a surety bond called a ‘Ne Exeat Bond’ (Obvious translation: No Leaving); and this bond is used as a guarantee that the party wishing to leave the US with the children of a dual custody divorce will uphold the mutually signed divorce agreement. A little confused: Lets try an example: Parties A&B are a divorced couple currently living in the US with shared custody of children. Party A has a Euro Passport and wishes to move to France and take the kids with them. Party B doesn’t trust that they will have their legally guaranteed access to the children once Party is outside of US legal Jurisdiction. The presiding Judge decides that the safest route is to make Party A procure a “Ne Exeat Bond” and post it with the court. Party A is forbidden to leave the country until doing so. The dollar amount of the ‘Ne Exeat Bond’ is set at estimated cost Party B will incur pursuing legal action in France if Party A doesn’t live up to their end of the divorce agreement. To procure this bond, Party A will have to show proof of international address, likely job, family members in the destination country and other evidence that proves they are indeed moving where they say. Nobody like divorce, but Party B sleeps better knowing that their access to their children is being protected.
Need more information? Contact an actual person at Jurisco who can immediately help you with a Ne Exeat bond application in California or who can answer any questions you may have regarding any Surety Bond. In California or any other state.