What is a reconveyance?
A reconveyance or deed of full reconveyance removes the lien that the lender placed against the property when the loan was originally taken out. The reconveyance is recorded at the county recorder's office in the county in which the property is located. It must reflect the information found on the deed of trust so the county can index it properly, and a title search will show that the lien (and Note) has been paid in full or satisfied. What is a deed of trust?
This is a recorded document that secures the note or contract between you and the lender. It is a "three party" document, naming the borrower, lender and the trustee - usually a title company, and references the property that is being encumbered or liened by the dollar amount of the loan.
Why does my name not appear on the Deed of Full Reconveyance?
In most cases it will. However, as stated above, the information input on the reconveyance must match what is found on the deed of trust. If the current owner assumed an existing loan from a previous owner, the note, and deed of trust that secured the loan with the previous owner is still of record. When the new owner later pays the loan off, the information on that original deed of trust must still be cited on the full reconveyance.
What documents can I expect to receive after I pay off my loan?
In most cases, you will receive the original recorded deed of trust, the note or contract, and the deed of full reconveyance. Sometimes the original note and deed of trust are lost - if this happens you will just receive the original recorded deed of full reconveyance. This document is all that is needed to prove that the loan has been paid in full.
When after I pay off my loan will I get my deed?
When you buy a home, a grant deed from the previous owner to the new owner is recorded. This document says that you now "own" the property. However, if you have taken out a loan to pay for the house, the lender will have you sign a note or contract, and then record a deed of trust or mortgage against the property. This recorded deed or mortgage is a lien that must be paid off entirely before you own the house "free and clear" of all liens or encumbrances. Simply put, you have a deed to your home when you bought it - however, the loan or lien from the lender recorded against the property is not satisfied until the "deed" of full reconveyance is recorded.