New Blog 1: Trustee Deed Of Trust

Thursday 13 December 2012

Trustee Deed Of Trust

A trust deed has three parties to it. The first is you, the borrower. You become the trustor. The second is the lender, who becomes the beneficiary. The third party is the trustee, who holds a claim of title, sometimes called "bare title," on the property. Real estate transactions that involve a loan will use the property as security for repayment of the loan. There are two basic documents that can be used to establish the security for the loan: a mortgage or deed of trust. Most states require a mortgage while some states, such as California, use a deed of trust. Mortgages and deed of trust differ in both terminology and the manner in which they can be used to enforce repayment of the loan in the event of a default. Power of sale states use a deed of trust in place of a mortgage document. The company named as trustee generally oversees closing of a real estate loan and transfers title to real property from seller to buyer. The deed of trust names the mortgage lender, the borrowers and the trustee. The deed of trust establishes the mortgage lender's lien against the mortgaged property, and records in the county where the property is located.