New Blog 1: Trustee On Deed Of Trust

Thursday 13 December 2012

Trustee On Deed Of Trust

When people borrow money to buy a home, the mortgage can seem confusing because the borrower has to sign two documents for the mortgage loan: the promissory note and the deed of trust, or, simply, trust deed. The promissory note is your promise to pay the borrower. The trust deed represents the lender's financial interest in the title to the property. If you don't pay the note, the lender can take the property under the terms of the trust deed. While the note itself is your promise to pay, the trust deed identifies the terms. Trust deeds are not perfectly uniform, and vary slightly by state and lender. In general, they give a legal description of the property, and define the loan amount and the parties involved. The legal procedures in the event of nonperformance of the loan will also be clearly set out. If the note is paid as agreed, the trustee's job is to reconvey title of the property to the borrower. If the borrower does not pay, the trustee holds the power of sale.