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Chapter 10: Deed of Trust

Borrower = TrustorLender = LenderNeutral Third Party = Trustee

DEED OF TRUST PARTIES

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Comparison of a Mortgage with Deed of Trust

Mortgage vs. Deed of Trust

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Mortgage vs. Deed of Trust (continued)

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the purpose of this deed is to provide security for that note. In other words, although this deed grants and conveys title to the trustee, it is understood that the quantity of title the trustee receives is only that which is necessary to protect the note.

this permits the borrower to continue to possess and enjoy the use of the property as long as the promissory note is not in default.

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Deed of Trust Document

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Simplified Reconveyance Request

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Simplified Reconveyance

Mortgage, Deed of Trust, & Land Contract

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Upon default, Lender can take possession of property & collect rents

Time between default & foreclosure is short

Power of sale provision Trustee already has titleUsually no statutory redemption

DEED OF TRUST ADVANTAGES

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Assignment of rents

BeneficiaryDeed of trustNaked title

Reconveyance or Release Deed

TrusteeTrustor

Key Terms

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