Q: Marsha, what is a Deed of Reconveyance and is it something I should be concerned about with my home?
A: Oh yes, it is something you should be concerned about. When you borrowed the money secured by your property, a Deed of Trust was created and recorded with the county recorder’s office. There are three parties to a Deed of Trust: Lender (called beneficiary); Borrower (Trustor); and the Deed of Trust Holder (Trustee), which can be a bank or escrow company.
A reconveyance is public notice you’ve paid off your loan. If I borrow $1,000 from you and make regular payments and finally pay off the loan, do I want a receipt for paying my loan off? You bet. Once a Deed of Trust has encumbered title to the property, a Deed of Reconveyance has to be recorded to clear the title to the home.