Substitution Of Trustee And Deed Of Full Reconveyance: Fill & Download for Free

Under U.S. law, technically, you can, but only for limited purposes. If you tried to initiate a foreclosure, for example, you’d be out of luck. The trustee is supposed to be a neutral party. But you can act as both trustee and beneficiary if you’re reconveying title to the borrower. There’s even a special document for that — in the biz, it’s called a Sub-Recon, short for Substitution of Trustee and Full Reconveyance.

Doubt it. This would be the title insurance companies money to eat in most places. In other words the secured lender would sue for their money and the title company would get called in to defend the sale which they would invariably lose. If they didn’t require title insurance and hadn’t done enough due diligence to see that the property had a secured mortgage then I doubt anyone would call that good faith. The subsequent lender would have a second position lein on the property behind the first lender. I imagine the new owner would get to sue the seller for fraud as well since they didn’t pay off the lein on the property that already existed.This is why real lenders require title insurance.

Do you want something to prove the LOAN was paid off?Or a document to prove who the legal OWNER is?ALL Past & current recorded property documents are available to the public from the local county recorder. (County the property is located in) Under Federal law, counties must make such records available to view, free of charge, at the county offices during business hours. Copies must be available upon request, for minimal cost.Many counties have their records available online, sometimes just data, but often full copies. Search the specific county website to find out their accessibility.My job is to prepare mortgage release docs for lenders across the country, so I get this kind of question daily from homeowners, because many homeowners/borrowers don't realize that the recorded Mortgage and the Property Deed are completely different documents.‘Deed' is used in the name of MANY Real Estate & mortgage documents with very different purposes.When you hear the word “DEED”' try substituting ‘“document" instead. “Deed" simply means the document is a legally enforceable agreement between the parties named in the document.Generally though when someone asks for “THE DEED,” they mean the document that shows the LEGAL OWNER of the property. A property Deed is recorded whenever the OWNER(s) transfer full or partial ownership from one party(ies) to new party(ies). (The document may be called Warranty Deed, Owners Deed , Quit-claim Deed, Property Deed, etc) Only the current legally recorded owner can transfer ownership by adding parties, selling the property or transferring it to another party, trust or estate. The LENDER is not an ‘ owner', & is not named on the property Deed, so the lender will NOT have the recorded deed, or even a copy. No matter how often you refinance, the PROPERTY DEED is not affected by the loan / lender.A “mortgage loan" may be secured with a “Mortgage, Deed of Trust, Trustees deed, Security Deed, etc. “ basically a ‘mortgage' is the contract between LENDER and BORROWER covering the terms of the mortgage loan and granting the lender limited rights / interest in the property, in return for a loan to the borrower. ( a Deed of Trust has 3 parties: Lender, Trustee, & Borrower ) But the lender NEVER ‘owns' the property. The lender records the Mortgage / Deed of Trust in the county public records and then holds the original document as security until the loan is paid - in - full.When the loan is paid off, the lender records a Release of Mortgage, (Release Deed, Satisfaction, Cancellation, Reconveyance of Deed of Trust, etc.) This ‘release' identifies the Mortgage/ Deed of Trust previously recorded in the county records, states that the contract is now satified and the lender is authorizing the county to ‘release' or cancel the recorded contract from the county property records.Each state has a specific time limit for either recording a release of mortgage with the county or ‘delivering' an original release to the borrower for recording. Most states do NOT require mailing a recorded copy to the borrower, because the records are available to the public through the county. However, most lenders mail the borrower the recorded release, if they receive one back from the county.