What Is a Assignment of Deed of Trust?
An Assignment of Deed of Trust transfers the beneficial interest (the lender's position) in a Deed of Trust from one party to another. It is commonly used when a loan is sold from one lender to another, when a loan servicer changes, or when a private lender transfers their interest in a note and deed of trust to a third party.
When to Record a Assignment of Deed of Trust
An Assignment of Deed of Trust must be recorded when a lender sells or transfers a loan secured by real property, when a mortgage servicing company acquires the servicing rights and beneficial interest, or when a private note holder assigns their interest to another investor. Recording ensures the chain of title for the lien is clear and accurate.
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- Banks and mortgage companies selling loans on the secondary market
- Private lenders and note investors transferring their interest in real estate loans
- Loan servicers documenting changes in beneficial ownership
- Real estate attorneys handling loan transfers and trust deed assignments
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Assignment of Deed of Trust Recording FAQ
Does an Assignment of Deed of Trust need to be recorded?
Yes. Recording provides constructive notice of the transfer and protects the new beneficiary's interest against subsequent purchasers or lienholders who had no notice of the assignment.
What is the difference between an Assignment of Deed of Trust and a Full Reconveyance?
An Assignment transfers the beneficial interest to a new lender while the lien remains on the property. A Full Reconveyance releases the lien entirely after the loan is paid off.
Can an Assignment of Deed of Trust affect the borrower?
Yes. After an assignment, the borrower must direct payments to the new beneficiary. The assignment does not change the terms of the loan.
How long does Assignment of Deed of Trust recording take?
Most Assignments submitted through eFileRecorder are recorded within 24-48 business hours.