What is a Deed of Trust?

A Deed of Trust is essentially a mortgage with the additional remedy of a non-judicial power of sale. The deed is held by a neutral third party (Trustee) who personally sells the property to satisfy the debt if the debtor fails to repay the debt.  more

In the United States, a deed of trust (or a trust deed) is an evidence of debt. It is the record of transfer of the title of a property to a third party to hold as security. It is a common method of financing your real estate property in several states. It is also the recorded document of title in the public records. A deed of trust instrument identifies the legal description of the property, the borrower and lender, the loan amount, the loan inception and maturity dates. It also specifies late fees, prepayment penalties, adjustable or fixed interest rates and any legal procedures or provisions and requirements. While most states use a mortgage, states like California use a deed of trust. This deed establishes a trustee as holding title to the property until the obligation is paid in full. In other words, there is a three party system: the purchaser of the property who is applying for the loan, the lender, and the trustee, who holds the deed of trust in good faith for the lender and ...  more

Deeds of trust are not really "deeds" to property, as that term is commonly used, they are documents purporting to create a security interest in the property, usually for a lender. In Texas, when there is a lender seeking to create a security interest in the property, the property is conveyed "in trust" to a trustee of the deed of trust, which maintains a right to non-judicially foreclose the interest if allowed for in the conveyance documents.  more

Basically, so long as you make your monthly payments on a timely basis, you should have nothing to worry about. But once you are in default (a term which is defined in both the note and the trust) then many of the provisions of that deed of trust become operative -- such as the right of the lender to ultimately foreclose on your property. Deed types: • Quitclaim Deed • Quick Claim Deed • Warranty Deed It should also be noted that you cannot deduct any mortgage interest for tax purposes unless your property is secured by a deed of trust. That means that the deed of trust must be recorded in land records. The deed of trust helps to verify and protect your legal interest in a property. Contact a Real Estate Lawyer for a further explanation on what is a deed of trust. Content Related to Topic • Trust Deed Investments: What You Should Know In a deed of trust, the borrower (trustor) transfers the Property, in trust, to an independent third party (trustee) who holds conditional title on ...  more

Instead of calling it a mortgage, several states, such as California calls it a deed of trust. Through this document, the legal title to the real property is vested in one or more trustees to secure the repayment of a loan over the specified period of time.  more

by John Gill Send Feedback to John Gill Don’t assume that the laws around one More Details about Don’t assume that the laws around one here. Translate to Spanish Translate to French Translate to German Translate to Italian Translate to Portuguese Feature Articles: 7 Simple Steps to Freedom - Getting Your Home... Forex Strength Trading - Unique Tools For A U... Weightlifting Coach Shares Tax Lien Investing... Update to Tax Lien Investing Book Review: New... Investing in Tax Liens From Afar... Cut Expenses: 6 Ways to Cut Homeowner Insura... Preforeclosure Investing Secrets Revealed... Foreclosures and Shortsales: Constructing a K... Click here for more >> If you live in Alaska, Arizona, California, Colorado, Georgia, Idaho, Illinois, Mississippi, Missouri, Montana, North Carolina, Texas, Virginia, or West Virginia you probably don't have a mortgage, even if the bank, your friends and common chatter call it one. It's more probable that you own your home through a Deed of Trust: ...  more

It is very similar to a mortgage. With a mortgage, you continue to hold full legal title to the property you have bought but you give the lender a lien on the property. If you do not make your mortgage payments, the lender can foreclose on the property. In some states, a deed of trust is used instead of a mortgage. With a deed of trust, you give the lender a deed to the property but the lender can only use or sell the property if you do not meet the loan terms. As a practical matter, there is very little difference between these two methods of giving the lender a security interest in the property.  more

Download Forms or Order Preparation Services! State Specific Forms or Attorney Prepared Deeds US Legal forms has deeds for every application and for use in every State. Whether you are transferring or recieving an interest in property, we have the form for you. Simply select your State and locate the deed specific to your application. ****Special Offer****: For a limited time, answer a few questions to help us locate the Deed for your situation and receive it for only $15.00.  more