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When the loan is paid off, the Lender is supposed to record a statement that the loan was paid on the property. This is a \u201crelease\u201d (called a Reconveyance form in California). So when the Reconveyance is recorded with the correct information on it it releases the Deed of Trust obligation that was recorded earlier.
A deed of trust can benefit the lender because it typically allows a faster foreclosure on a home. Most deeds of trust have a \u201cnon-judicial foreclosure\u201d clause, which means that the lender won't have to wait for the court system to review and approve the foreclosure process.
A Deed of Trust (D.O.T.) is similar to a mortgage, however varies in a few crucial points. 1) A D.O.T. is much easier to foreclose upon then a mortgage because the process to foreclose on a D.O.T. bypasses the judicial process.
A Satisfaction of Mortgage, sometimes called a release of mortgage, is a document that acknowledges that the terms of a Mortgage Agreement have been satisfied, meaning that a borrower has repaid their mortgage loan to the lender.
In that context, reconveyance refers to the transfer of title to real estate from a creditor to the debtor when a loan secured by the property\u2014i.e. mostly likely a mortgage with the property as collateral\u2014is paid off.
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People also ask

What Colorado hard money borrowers need to know? Colorado is the only state in the United States that uses a \u201cPublic Trustee\u201d for foreclosures. This system of managing foreclosures has been in place in Colorado since 1873.
A deed of reconveyance is a legal document that indicates the transfer of a property's title from lender to borrower. The deed of reconveyance is typically issued after the borrower has paid off their mortgage in full. Some states do not use mortgages but use deeds of trust.
What is a Mortgage Release? A Mortgage Release is where you, the homeowner, voluntarily transfer the ownership of your property to the owner of your mortgage in exchange for a release from your mortgage loan and payments.
This release of mortgage is recorded or filed and gives notice to the world that the lien is no more. On the other hand, when you have a trust deed or deed of trust, the lender files a release deed. With a deed of trust, you temporarily give control of the title to your property to the lender for security purposes.
(4) The term \u201cthirty years\u201d, as used in this section, means thirty years after the original maturity date of such mortgage or deed of trust.

deed of trust release form