Legal
Deed of Trust
A legal document used in many states instead of a traditional mortgage that involves three parties: the borrower, the lender, and a neutral trustee who holds the property title until the loan is paid off. If the borrower defaults, the trustee can sell the property without going through the lengthy court foreclosure process. Whether your state uses a deed of trust or a mortgage affects how foreclosure works if things go wrong.
Why It Matters
Deed of Trust has real legal implications for your rights and obligations as a homeowner or borrower. Overlooking the legal details of a real estate transaction can lead to costly problems down the road.
If you have questions about deed of trust, consider consulting a real estate attorney, especially if you are in a state that requires attorney involvement in real estate closings. A small investment in legal advice can prevent major headaches later.