Mortgage Deed of Trust

What is a Mortgage Deed of Trust? What is a deed of trust? It is a legal contract generally used by banks to record details of real estate loans. A deed of trust is very similar to mortgage as it is the way for a mortgage lender to secure its interests in... More

What is a Mortgage Deed of Trust? What is a deed of trust? It is a legal contract generally used by banks to record details of real estate loans. A deed of trust is very similar to mortgage as it is the way for a mortgage lender to secure its interests in a home loan. The various things involved in this kind of deed include borrowers names, principal amount, interest rate, installment amounts, payment dates, maturity date, prepayment penalties, and default clause. In mortgage and deed of trust, borrowers usually sign a promissory note, agreeing to pay back the amount of the loan along with interest. There is a difference between a trust of deed and mortgage. In the case of trust deeds, the bank holds the property title until the loan is satisfied. On the other hand, in a mortgage, the borrower is given the title and a lien is issued by the bank against the property until the loan is satisfied. Three parties are included in a deed of trust which are lender, borrower, and trustee Less