Posted on: 09th Oct, 2006 09:21 am
what is deed of trust ?
Hi Karthik,
A deed of trust is quiet like mortgage but in a deed of trust the title is held in a trust until the payments are made to the lender. If the borrower defaults the trustee can sell the property as per the terms mentioned in the deed of trust.
Julian
A deed of trust is quiet like mortgage but in a deed of trust the title is held in a trust until the payments are made to the lender. If the borrower defaults the trustee can sell the property as per the terms mentioned in the deed of trust.
Julian
Hi,
I would like to add that some states use deed of trust while some mortgages, like in California and some other states deed of trust is used instead of a mortgage.
The main difference that is important for borrowers is that when there is delinquency in loan payments the trustee in a deed of trust can sell the house by initiating the proceedings for foreclosure.
The procedure mentioned in the deed of trust is followed and normally the lender does not have to go to the court as the trust has the legal rights to foreclose.
Thanks
Neily
I would like to add that some states use deed of trust while some mortgages, like in California and some other states deed of trust is used instead of a mortgage.
The main difference that is important for borrowers is that when there is delinquency in loan payments the trustee in a deed of trust can sell the house by initiating the proceedings for foreclosure.
The procedure mentioned in the deed of trust is followed and normally the lender does not have to go to the court as the trust has the legal rights to foreclose.
Thanks
Neily
Recording of trust deeds is not a necessity but in order to protect the lender's interest in the property, it is recorded with the County Recorder in the county where the property is located. The trust deed should also be notarized prior to being recorded.