Deed of Trust

Archive for November, 2006

Question: Question When Will We get keys (more details)?

We signed loan docs on Wed night and I delivered down payment and remainder closing cost by noon Thursday, when will I get keys for house? (friday was new years eve)

Addl details:
I'm in California. Docs consisted of (1) Est. closing costs (2) HUD (3) title report (4) Deed of Trust (all instructions (5) tax forms (6) insurance disclosures, etc..

Who would know more exactly escrow lady or loan broker?

They were notarized and
bear with me last time i'll ask.
also this was a short sale

Answer: You'll get the keys when the mortgage bank disburses the funds to the seller. Either escrow lady or loan broker will be able to tell you this. It usually happens within 48 hours of closing.

Hard Money Loan To Value in California

The definition of Deed of Trust:

A Deed of Trust is the document used in some states instead of a mortgage. The title of the property is conveyed to a trustee rather than to the borrower.

Is a Deed of Trust public recorded?

Yes a Deed of Trust is recorded in public records and can be browsed at each county's courthouse.

What is in the Deed of Trust? What does the Deed of Trust tell?

A Deed of Trust states that there is a lien on the real estate property. A Deed of Trust is used instead of a mortgage in some jurisdiction.

Different names for Deed of Trust

A Deed of Trust is sometimes called a Trust Deed or a Potomac Mortgage.

How does a deed of trust work?

A deed of trust involves three parties:

• the trustor or the homeowner or borrower,
• the beneficiary or the lender, and
• the trustee or a neutral third party

The trustee holds temporary title until the trustor has paid off the lien.

Diagram illustration how a deed of trust works

Many people are confused of how a deed of trust works. Each party involved in a Deed Of Trust Agreement serve different purposes. The trustor in a Deed Of Trust Agreement is the homeowner or the borrower. The trusee of a deed of trust holds the title of the property until the amount borrowed is paid off or the lien is paid off. The trustee holds the title of the property for the benefit of the beneficiary or the lender.

Question: Some 'Exceptions and Exclusions' in the title policy, what does it actually mean? (See detail as quoted)

As quoted from the Preliminary title report:

" Covenants, conditions, Restrictions and Easements in an instrument recorded in book 4563 of Deeds, Page 131, any amendments and modifications thereto, which provide that a violation thereof shall not defeat or render invalid the lien of any first mortgage or Deed of Trust made in good faith and for value, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c)"

Answer: Put into plain English.

The first part notes that there are recorded Covenants to the property. Covenants are restrictions placed on lots in a development by the developer. For example, it may say that all homes have to be brick or that you can't have vinyl siding.

The last part notes, however, that certain covenants may be invalid under federal law. In the early 1900s, a lot of properties had covenants forbidding the sale of a lot to a racial minority. That type of covenant may be invalid.

The middle part notes that the covenants do not prevent a valid mortgage from foreclosing on the property.

What they really mean is that, you, as the buyer have the responsibility to check with your recorders office to find out what the covenants and restrictions associated with your property are. If you don't, then you aren't covered by the title insurance if they come back to bite you.

Loan Modification Information Miami Florida Attorney Foreclosure www.FloridaLawAttorney.com