What Is a Deed of Trust?

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How Is a Home Loan Secured?

Depending on the state in which a homeowner secures a home loan, they either signed a mortgage or deed of trust to procure the loan. A mortgage is a real estate lien on a property placed by a financial institution or bank for a loan to purchase property.

What Is a Deed of Trust?

A deed of trust is a legal title similar to a mortgage because it pledges real property to secure a loan. The deed involves three parties:

What Is a Trustee in a Deed of Trust?

A trustee is the person who is in charge of the property and the deed. This position gives a trustee the right to sell the real property if the borrower defaults on payments. The trustee is an independent third party who holds legal title to the real property.

What Is a Deed of Trust Transfer?

A deed of trust transfers occurs where the beneficiary’s name is placed on the deed of trust, replacing the former beneficiary’s name. The deed is then documented and recorded in the county records.

What Is a Deed of Trust Foreclosure?

A deed of trust foreclosure is a non-judicial foreclosure process used in some states that allows lender to foreclose without going through the court process. In order to get a deed of trust foreclosure, the contract for the deed of trust must include a power of sale clause.

What States Use Deed of Trust Loans?

The following states have deeds of trust instead of mortgages:

Should I Talk to an Attorney about a Deed of Trust?

If you have any questions or concerns about a deed of trust, contact a real estate attorney. The attorney will explain the deed in detail and the process to avoid or proceed with a foreclosure.

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Last Modified: 08-17-2015 06:49 PM PDT

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