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Lenders in Texas customarily use a release of lien when the loan secured by a deed of trust has been paid in full or otherwise satisfied. The release of lien is recorded in the county where the real property collateral is located.
The only way to remove your name from the mortgage after the divorce is for your spouse to refinance the mortgage in their name. This process may take time because the bank will look at your spouse's income and assets to determine if they can refinance the mortgage.
Typically, it is a vehicle used to allow one co-owner of property to buy the interest of the other co-owners while using 100% of the interest as collateral for a loan to acquire the property. Typical examples are divorces, probates, and the division of co-owned assets by people who are not partners.
Under a deed of trust, the borrower conveys title to real property to a trustee as security for the debt owed to the lender. When the underlying debt is paid, the lienholder has a duty to issue a written release as evidence of the discharge of the lien. See FNFS, Ltd.
Owelty is an equalization charge. It is the amount paid to another party when it is impossible to partition real estate into units of equal value, so that each party receives equal value from the property.