When a home loan is paid off, a Lien Release is recorded with the county. A lien release document transfers title from a trustee or beneficiary (e.g., the lender) to the equitable owner (e.g., the borrower) of the real estate when the debt is satisfied (or paid off) under the terms of a deed of trust or mortgage. Every state uses a different name for the Lien Release Document, e.g., Satisfaction, Release, Discharge, or Substitution of Trustee and Full Reconveyance. No matter what it’s called, the lien release document has the same purpose: to release the lien of public record.
Paid-in-full loans are referred to ReconTrust for lien release processing (i.e., the prepared documents are reconveyed) and recorded with the County Recorder. This serves as notification that the borrower no longer owes debt on the property.
The ReconTrust Lien Release department is primarily responsible for preparing, executing, notarizing and sending for recordation of real property the lien releases for those loans that have paid off for Countrywide Financial Corporation, its investors, sub-servicers, subsidiaries, and parent affiliates. The Lien Release department generates lien release documents that conform to the specific requirements of counties and states.