Deed of Trust

Question: purchasing a propety from a friend with a Deed of Trust in it?

I was in the process of purchasing a property, but when I checked with the county registrar there was a short form Deed of Trust with wells fargo bank. What does that mean? And what do I need to do once my escrow closes? Should this be of concern since I am purchasing a property with this. Thanks

Answer: basically there are two terms for the security instrument that a lender places against the property, mortgage and Deed of Trust. some states it's a mortgage, the states with deeds of trust, an attorney or trustee works as an intermediatary between the lender and the borrower. When the lien is paid off, the trustee gets a satisfaction and records it to show the Deed of Trust is paid in full. This means that your friend has a mortgage with wells and wells has to be paid off before your friend gets proceeds from the sale. You will not have to do anything to remove this lien, the trustee and the lender will take care of it. What concerns me is that why are you checking for liens, I hope you have title insurance for this transaction, if not, get it, this is not a situation to skimp on money. If title insurance is not imvolved and there is a prior claim to the property, you may lose the property, it's that simple, hope this helps

Collateralizing America Hr 8 pt 3 of 5