Which of the following terms best describes the act of reassigning a mortgage from the lender back to the borrower?

The term that best describes the act of reassigning a mortgage from the lender back to the borrower is reconveyance. Reconveyance refers to the process where the lender releases their interest in the property and transfers it back to the borrower, typically after the mortgage has been paid off. This process is often formalized through a document, known as a reconveyance deed, which is recorded in the public records, indicating that the borrower now holds clear title to the property without the encumbrance of the mortgage.

Understanding this term is crucial for professionals in the real estate and mortgage industry, as it signifies the end of a borrower’s mortgage obligation and the restoration of full ownership rights to the borrower. This concept is particularly significant in states that have a deed of trust system, where reconveyance becomes a formal key step for clearing the title.

In contrast, refinancing involves obtaining a new loan to pay off the existing mortgage, which does not relate to the reassigning of a mortgage but rather to securing different financing terms. Realignment is not a term commonly used in mortgage processes, and redemption refers to a borrower's right to reclaim their property by paying off the mortgage before a foreclosure sale. These terms serve different purposes within the mortgage landscape and