A homeowner in Provo, Utah signed a trust deed when she purchased her home. She has now paid off her mortgage loan in full. Which document should the lender record to release the lien and return full unencumbered title to the homeowner?
Correct Answer
D) A reconveyance deed, recorded with the county recorder to release the trustee's interest
Under Utah Code Ann. § 57-1-35, when a trust deed loan is paid in full, the trustee issues and records a Deed of Reconveyance (also called a reconveyance deed or full reconveyance). This document reconveys the legal title held by the trustee back to the trustor (borrower), releasing the lien and restoring the homeowner's full, unencumbered title. The reconveyance deed is the trust-deed-specific equivalent of a mortgage satisfaction and must be recorded with the county recorder's office.
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Related Topics & Key Terms
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Related Concepts
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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