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.
Once a property is fully paid for, a deed of reconveyance is issued.
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.