Chapter 10: Deed of Trust © OnCourse Learning

Deed of Trust Parties Borrower = Trustor Lender = Lender Neutral Third Party = Trustee © OnCourse Learning

Comparison of a Mortgage with Deed of Trust © OnCourse Learning

Mortgage vs. Deed of Trust © OnCourse Learning

Mortgage vs. Deed of Trust (continued) © OnCourse Learning

Deed of Trust Document 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. © OnCourse Learning

Simplified Reconveyance Request © OnCourse Learning

Simplified Reconveyance © OnCourse Learning

Mortgage, Deed of Trust, & Land Contract © OnCourse Learning

Deed of Trust Advantages Upon default, Lender can take possession of property & collect rents Time between default & foreclosure is short Power of sale provision Trustee already has title Usually no statutory redemption © OnCourse Learning

Key Terms Assignment of rents Beneficiary Deed of trust Naked title Reconveyance or Release Deed Trustee Trustor © OnCourse Learning