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Brief Discussion on The Deed of Reconveyance -California When your refinance your loan, which is secured by a Deed of Trust

(recorded at county recorder) the original note has been Paid Off and you now have signed (executed) a new promissory note and a new Deed of Trust. California is a "trust deed" state rather than a "mortgage" state but in common parlance, most folks refer to their loan as a "mortgage." Whatever the terms of your loan, whether the loan is a 15 year mortgage or a 12 month loan, if you have refinanced or made all of your loan payments, then you will want the lien (Deed of Trust) removed from your property and this is typically done with the recording of a reconveyance. A reconveyance for a Deed of Trust upon satisfaction of any loan obligations is addressed in California Civil Code 2941. 2941(b)(1) provides that if you have satisfied your loan obligations, then the lender (beneficiary under a Deed of Trust) or its assignee shall within 30 calendar days execute and deliver to the Trustee of the Deed of Trust several documents. These documents include the original note (i.e. the Promissory Note), Deed of Trust, and a request for a full reconveyance. The Trustee shall then execute the full reconveyance and shall record the full reconveyance with the county recorder within 21 days after receipt by the Trustee of the original note. Of course, the above-described situation is the ideal scenario. What if the Trustee or the lender (beneficiary) do not fulfill their duties? You, as the trustor/borrower, have options. First, if the full reconveyance has not been recorded within 60 days of your last required loan payment, then you can make a written request to the beneficiary/lender to issue a full reconveyance under Civil Code 2941 (b)(2). Second, if the full reconveyance has not been executed and recorded despite you making all the payments and writing the aforementioned request to the lender, then 75 days after the last required loan payment was made you may have a title insurance company record a release of the obligation. Civil Code 2941(c). Additionally, should you encounter an uncooperative Trustee or lender after you have satisfied your loan obligations, please note that there are civil and criminal penalties for some violations of Civil Code 2941. Historically, if you refinanced, then your original promissory note is sent to you marked paid in full and the Deed of Reconveyance recorded at the

county recorder. Of course in a refinance situation, you would have executed a new promissory note and a new Deed of Trust (the security). Only the new Deed of Trust would be recorded. Promissory Notes are not recorded in California. It is advisable that you obtain copies of the recorded documents at your local county recorder. Some folks have found fabricated pages, fabricated signatures,fabricated initials and other discrepancies on some of the recorded documents and these are different than any loan documents given to you by the title company or the refi company. Should you have any issues with the refi, the recorded documents, the lender or the title company it is advisable to contact an attorney as soon as possible.

Disclaimer: I am not an attorney and this is not legal advice. This is for educational and informational purposes only. Take no action on this information without consulting a competent attorney in your jurisdiction.