 Sam
Site Admin
Joined: 21 May 2005
Posts: 299
Location: CALIFORNIA
127.83 Dollars($)
|
 Posted: Sun Apr 04, 2004 10:39 pm Post subject: Regaining property ownership through Reconveyance Clause |
|
|
Reconveyance Clause is a statement in the deed of trust (used in mortgage transactions) that mentions that the owner of a property should get back the title after he has paid back the mortgage loan in total.
For example: Laura takes a mortgage loan of $50,000 for the purpose of home improvement. While doing so, she signs a deed of trust having the reconveyance clause. This clause demands that when Laura repays the entire mortgage amount, the lender should give back her title to the property.
In a mortgage deal under a deed of trust, the borrower transfers the title of the property to the trustee which holds it for the benefit of the lender. When the lender issues a "Request for Full Reconveyance", the reconveyance clause in the deed of trust allows the trustee to hand over the title of the property to the borrower after he pays back the loan.
The reconveyance clause also allows for a partial release of the mortgage that includes releasing a part of the pledged property that is kept as the security, provided certain requirements are fulfilled. |
|
