Deed of Trust

Archive for the ‘Deed of Trust Basics’ Category

Welcome to the Deed of Trust Blog

The Deed of Trust blog is dedicated to share resources and information on the subject of deed of trust as well as other forms of deeds.

What is a deed of trust?

A deed of trust is the legal document used in some states to secure the title of a real estate property instead of a mortgage. In a deed of trust state, when the borrower buys a property, the title of the real estate property is conveyed to a trustee, who is a neutral third party, rather than to the borrower. The borrower has the equitable title to the property whereas the lender has the legal title.

The deed of trust is widely used in many real estate transactions. On this Deed of Trust website, we discuss many aspects evolving around deed of trust. A deed of trust is either void or voidable. A Void Deed of Trust is not enforceable and the lender no longer has the right to claim the legal title of the property.

Many real estate properties nowadays are owner financed. A Deed of Trust Owner Finance is more and more common. The owner can sell the property with a Deed of Trust Owner Finance allowing many more people to become homeowners. Without the concept of Deed of Trust Owner Finance, a smaller number of people will be able to afford to own real estate properties. Not all is lost for the owner since in a Deed of Trust Owner Finance deal, the owner gets paid the principal and interest regularly creating cash flow for him or her.

With the differences between a deed of trust state and a mortgage state comes the differences between a Deed of Trust Foreclosure and a mortgage foreclosure. California is one of the states that has both California Deed of Trust Foreclosure and mortgage foreclosure. We discuss both aspects of foreclosures on our website.