Reconveyance Deed
If you purchase a home using bank or private party financing, the technical owner of the property is the lender. It is not until you pay off your debt – or mortgage – that complete ownerships of the home transfers to your name. This transfer happens with the issuance of a reconveyance deed. While the bank should automatically issue one when you have paid off your mortgage, they may not always do so. If you don’t receive one, you shouldn’t wait around to see if the bank will eventually file for one. Instead, you should initiate the process for a reconveyance deed on your own. In addition to enjoying the benefit of being able to say that you own your home free and clear, a reconveyance deed is an important document that will be necessary anytime you’d like to use your home as collateral. It will show a new lender that there are no outstanding loans against the house. If you’re in a need of a reconveyance deed, you can try to handle the process on your own by printing out crude applications and forms off the internet. A better option is to contact a real estate or financial services company and allow them to handle the legwork on your behalf.