Deed of Trust form
A deed of trust is a document that is used in real estate in the United States when a piece of real estate is transferred to a trustee. The trustee will be holding the property as security for a loan that has been taken out in the grantors name and the borrower is referred to as a trustor. The lender of the money for the loan is referred to as the beneficiary of the trust need. In most cases, these documents will be drawn up when the lender of the money actually gives the borrower the money in order to actually purchase the property.
In most cases, the lender of the money will immediately demand a deed of trust in order to secure themselves for the loan. Basically, should any problems occur with the repayment of the loan, the lender of the money will hold the right to seize the property in order to obtain what was lent to the and what is currently owed. Although this might sound very similar to a mortgage, trust deeds actually differ as there are always at least three parties involved in the deed. The third party will actually hold the legal title.
A deed of trust is a legally binding document that is usually recorded with the county clerk in the United States wherever the property is located. One of the biggest advantages when compared with a mortgage is that a deed of trust will actually give the lender to foreclose on the property should the borrower default on the loan. Many mortgage sin the Us will not include this right and therefore, these are often preferred by many lenders of money for the purpose of real estate in the country.