Deed Of Full Reconveyance
I discovered that a Deed or Full Reconveyance removes the lien that the lender placed agains the property when the loan was originally taken out. I found a Notice of Trustee's Sale in the local paper, did some research on the address to find that there was a notice of default on 7/16/2003 (expected) and then a Full Reconveyance on 10/06/2003. What exactly does this mean? Is the homeowner no longer in default? Or does this mean that he/she refinanced? Under what conditions does a grantee recieve a Full Reconveyance?
Hi, When you borrow money against a piece of property in a Trust Deed State, they have you execute a note. and then a Deed of Trust. The Deed of Trust is recorded against the property. But the Lender does not record the note he just hides it and waits for payments.
Ok time passes, you go to Vegas and you make a killing. You come home, you buy the new Ferrari and you pay off the house. When you pay off the house the Trustee then executes a Deed of Full Reconvayance. This is recorded and it removes the Mortgage. You are back to square one.
If there is a foreclosure after the sale the old note and trust deed are then retired. The Trustee then files a Trustees Deed on Sale and that puts the title in the name of the person who bid the most.
Got it? The parties, Trustor, he who borrowed the money. Trustee, the person who holds title during the period of the Note and Trust Deed being outstanding. Beneficiary, the person who loaned the money.
Not a bad system. Lucius <IMG SRC="images/forum/smilies/icon_cool.gif"> <IMG SRC="images/forum/smilies/icon_cool.gif"> [ Edited by Lufos on Date 01/15/2004 ]