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A Deed of Reconveyance is documentation that the debt secured by a Deed of Trust (a document that allows a third-party to hold the title to a property until it is completely paid for) has been fully paid.
A Deed of Reconveyance is documentation that the debt secured by a Deed of Trust (a document that allows a third-party to hold the title to a property until it is completely paid for) has been fully paid.
Note that deeds of release and reconveyance can work together, as the former removes the previous claim (the mortgage) from the property, while the latter actually transfers the title of the property to the borrower.
Reconveyance means the return of title to the original owner. Most commonly arises in the context of reconveyance of real estate deedsalso referred to as deed of reconveyance.
After the foreclosure sale, if the property sells for a higher price than what is owed, the excess funds would then be used to pay off any additional liens that may be on the property.
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A deed of trust is a legal agreement thats similar to a mortgage, which is used in real estate transactions. Whereas a mortgage only involves the lender and a borrower, a deed of trust adds a neutral third party that holds rights to the real estate until the loan is paid or the borrower defaults.
Note that deeds of release and reconveyance can work together, as the former removes the previous claim (the mortgage) from the property, while the latter actually transfers the title of the property to the borrower.
A document known as a substitution of trustee and full reconveyance identifies the person who has the authority to reconvey the property and remove the lien. Most importantly, a deed of full reconveyance, known as a satisfaction of mortgage in some states, transfers title back to the borrower.
A substitution of trustee simply names a new person to take over that position, as well as a secondary trustee if necessary. A substitution of trustee and full reconveyance serves two purposes: It enables a lender (such as a mortgage company) to appoint a new trustee. It allows the new trustee to release the lien.
The substitute trustee is usually the law firm representing the lender. This is who will handle the sale and other foreclosure matters.

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