What happens to the Deed of Trust when I finish paying?

Question

Accepted Answer

The Deed of Trust is the lien that secures the balance you owe, exactly like a bank mortgage. When you pay the last dollar, whether at the end of your 10 or 15 year term or earlier, since there is no prepayment penalty, the lien is released and a release of lien is recorded at the county in your favor. From then on the only document on your land is the Warranty Deed that has been in your name since closing day; your ownership itself does not change, because you were the owner all along. Keep the recorded release with your deed and survey.