To extract a home equity loan from a property deed, first review the deed and mortgage documents to confirm the loan’s existence and terms. Contact the lender to request a satisfaction of mortgage letter, which legally releases the lien. Pay off the loan in full or refinance the property to replace the existing loan with a new one, ensuring the deed reflects the updated equity. Consult a title company or attorney to update the deed and remove the loan’s reference. If the loan is paid, the lender must file a release with the county recorder’s office.

This process is necessary because home equity loans create a lien on the property, appearing on the deed as a security interest. Removing it requires satisfying the loan obligations or restructuring the debt. Data from the Federal Reserve’s 2022 Survey of Consumer Finances shows 46.5% of U.S. homeowners with mortgages hold home equity debt, averaging $70,000 per loan. Refinancing remains a common method: the National Association of Realtors reported 40% of refinances in 2023 aimed to tap equity, with 75% of borrowers achieving lower interest rates. title companies and lenders enforce compliance to prevent legal disputes, as unaddressed liens can invalidate property transfers. Proper execution ensures clear ownership and avoids future liability.