Deed of Trust

Archive for November, 2008

Question: can soneone tell me what this means in lay mans terms?

513.43 VALUE.
(a) Value is given for a transfer or an obligation if, in exchange for the transfer or obligation,
property is transferred or an antecedent debt is secured or satisfied, but value does not include an
unperformed promise made otherwise than in the ordinary course of the promisor's business to
furnish support to the debtor or another person.
(b) For the purposes of sections 513.44(a)(2) and 513.45, a person gives a reasonably
equivalent value if the person acquires an interest of the debtor in an asset pursuant to a regularly
conducted, noncollusive foreclosure sale or execution of a power of sale for the acquisition or
disposition of the interest of the debtor upon default under a mortgage, Deed of Trust, or security
agreement.
(c) A transfer is made for present value if the exchange between the debtor and the transferee
is intended by them to be contemporaneous and is in fact substantially contemporaneous

Answer: In lay terms, this code section is stating that for a transfer of goods or services to be legit the receiver must pay for it.

This would likely apply in the case of a bankruptcy or some similar situation. If your business was going bankrupt you can not simply sell your company car to your friend for $1, and have him let you drive it to avoid it being liquidated with the business.

Payment doesn't have to be in cash, it could be in equivalent service, taking over an equivalent debt such as taking your car and your car payment.

Question: Is a rider to a Deed of Trust or Mortgage repacement of a Deed of Trust or mortgage ?"?

Answer: No. A rider is a supplement or addendum to the Mortgage/Deed of Trust.

Many riders include:
Prepayment Penalties
1-4 family (for Rentals)
Second Home
Adjustable Rate

These riders will replace a section or paragraph in the original Mortgage/Deed of Trust. The rider terms to prevail over the original.

Question: what is the definition of "assignment of Deed of Trust"?

What exactly does it mean when a document referred to as an "assignment of Deed of Trust" is filed with the county recorders office?

Answer: This is a legal question and should more appropriately be posted under the legal section. But here is a definition from the Legal Dictionary online

"A document that embodies the agreement between a lender and a borrower to transfer an interest in the borrower's land to a neutral third party, a trustee, to secure the payment of a debt by the borrower.

A Deed of Trust, also called a Trust Deed or a Potomac Mortgage, is used in some states in place of a mortgage, a transfer of interest in land by a mortgagor-borrower to a mortgagee-lender to secure the payment of the borrower's debt."

Musings of a seasoned ATO adversary / Australias richest man uses Hybrid Trust