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.