Deed of Trust

Archive for the ‘Using a Deed of Trust’ Category

What is a release of Deed of Trust?

A release of Deed of Trust is signed and executed by the beneficiary or lender of the debt when the debt is paid in full and then submitted to the Public Trustee office of the county where the real estate property is located. Upon validation, the Public Trustee then signs and executes the Release of Deed of Trust Form and then records the release of Deed of Trust with the County Clerk and Real Estate Recorder.

What documents are needed for release of Deed of Trust?

Each state and county has different requirements for the release of Deed of Trust. You need to look into the rules set forth by the county where your real estate property is located that you want the release of Deed of Trust on. Usually, for a release of Deed of Trust, the following documents are necessary.

1) Original promissory note

The original Promissory Note signed and marked as fully paid or cancelled by the beneficiary (the lender) or the agent representing the beneficiary is usually the first document needed for the release of Deed of Trust.

2) Recoreded Deed of Trust

The recorded deed of trust is also needed for the release of deed of trust. This can be the original or a copy of the original recorded deed of trust. If you have lost or misplaced the recorded deed of trust, you can usually purchase a copy of the original deed of trust from the County Clerk or Recorder office.

3) Request for release of deed of trust

For most counties, a request for release of deed of trust is essential to initiate the process of release of deed of trust. This document is usually signed by the beneficiary or the lender. Some counties will accept this request for release of Deed Of Trust Document in place of the original promissary note, should the original promissary note become unavailable.

4) Fee for Release of deed of trust

A fee is charged for processing the Release of deed of trust. Each county has different fee for the release of deed of trust.

5) Means of returning release of deed of trust documents

Usually, you will also have to provide a stamped, addressed envelope, in which to return the cancelled deed of trust documents. If the release of deed of trust documents are mailed, you should use certified mail.

There are many ways to void Deed of Trust. There are also many court cases where the validity of the Deed of Trust is disputed and the Deed of Trust is found to be a void Deed of Trust.

First way to void Deed of Trust

The first and most common way to void Deed of Trust is to pay off the lien or debt on the real estate property. The terms of the Deed of Trust provide that the Deed of Trust is a void Deed of Trust if all debt payments are paid on time. The transfer of legal title of the real estate property as specified in the Deed of Trust will be voided. Thus, the deed of trust no longer has a purpose and is deemed a void deed of trust.

Until the deed of trust becomes a void deed of trust, the trustee has the power to foreclose on the borrower's home if the debt is not paid. In a deed of trust state, the trustee will not have to go to court to foreclose on the real estate property. This makes it easier and faster for the homeowner to be in foreclosure than in a mortgage system.

Second way to void deed of trust

A deed of trust can become a void deed of trust if it exists by virtue of fraud, mistake or as a result of material misrepresentation. Usually, you can dispute the validity of the deed of trust in court. If a deed of trust if found to be a void deed of trust, then you are under no obligation to hand over the property or oblige by the terms laid out in the void deed of trust.

An example of a fraud that could void deed of trust is when a signature is forged. A material misrepresentation that could void deed of trust is also common. A homeowner may not understand the implications of what he or she is signing especially when there is a valid reason why he or she would not understand. The law has been known to rule in favor of elderly plaintiffs with more complicated than necessary legal documents to sign. The law will judge whether the homeowner is taken advantaged of. If so the deed of trust is a void deed of trust.

How to prove a void deed of trust?

Just like anything else in the court system, sometimes proving that a deed of trust is a void deed of trust can be difficult. If you suspect that your deed of trust you are dealing with is a void deed of trust, you may want to seek legal advice. Usually the burden of proof that a deed of trust is a void deed of trust is upon you. So, make sure that you keep all records of what you sign and all records of any agreements. Get all agreements in writing.

How and when do I get the legal title of the real estate property?

If the trustor or borrower:

• pays all debts when due, and
• pay for all necessary taxes and fees,
• maintain insurance and
• maintain adequate repairs and
• pay the costs, fees and expenses of making, enforcing and executing the deed of trust

then the deed of trust conveyance will become void, and the Trustee will reconvey by a quit claim deed, the real estate property at expense of the parties agreed in the deed of trust.