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LIVING TRUST
What is an assignment of trust deed.
- The Definition of a Leasehold Deed of Trust
If you own a home, you may have signed a trust deed that gives the mortgage lender a claim on the property. A default on the loan gives the lender the legal authority to foreclose on the loan and take possession of the house. An assignment of a trust deed conveys that claim to another party.
Considerations
Lenders have the right to sell their home loans. This can happen once or several times over the long life of a mortgage. The usual customers for mortgages are banks and other companies that are seeking safe and stable investment returns. This "secondary" market for mortgages is quite active, and a lender has plenty of opportunity to sell a mortgage and turn a profit. Read More: What Is a Corporate Assignment of Deed of Trust?
When a lender sells the loan, it assigns the trust deed to the buyer. “Assignment” means to convey a claim or a right to another party, known as the “assignee.” This is done by creating another legal document — the assignment of trust deed — and having it signed by both buyer and seller. The trust deed, and other documents associated with the loan, become the property of the buyer.
The assignment of trust deed is a short, usually single-page document. The body text gives the names of the deed buyer and the property owner, the date of the original trust deed, and the legal description of the property for which the original deed was executed. It may also give the terms of the deed sale. The seller signs and dates the document, and has it notarized. The buyer then has the assignment of trust deed recorded with the registrar of the county where the property is located.
A borrower has no legal right to block or negotiate the terms of an assignment of trust deed. The assignment does not affect the terms of the loan. The monthly payments remain the same, although the borrower will have to send them to a new address. The new owner of the trust deed becomes the lender and collects all mortgage payments, sometimes on its own and sometimes through a servicing company. If a default occurs, the latest assignee has the right to foreclose and repossess the home.
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Founder/president of the innovative reference publisher The Archive LLC, Tom Streissguth has been a self-employed business owner, independent bookseller and freelance author in the school/library market. Holding a bachelor's degree from Yale, Streissguth has published more than 100 works of history, biography, current affairs and geography for young readers.
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Assignment of Deed of Trust definition
Examples of assignment of deed of trust in a sentence.
The Borrower Loan Agreement, Regulatory Agreement, Deed of Trust and other Borrower Loan Documents existing on the Closing Date and the Assignment of Deed of Trust assigning for security purposes and without recourse the Deed of Trust and Borrower Loan Documents from the Governmental Lender to the Funding Lender.
More Definitions of Assignment of Deed of Trust
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- North Carolina Assignment of Deed of Trust by Corporate Mortgage...
Corporate Assignment Of Deed Of Trust
Description What Is A Deed Of Trust In Nc
Nc Deed Of Trust Related Assignment of Mortgage Forms for North Carolina
North Carolina Assignment of Mortgage by Individual
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When your mortgage lender decides he wants to sell your mortgage loan to another lender, your mortgage lender will sign an assignment of deed of trust in favor of the new lender. This assignment gives the new lender the same lien on your property that your original lender had under the mortgage loan.
What is a corporate assignment of deed of trust?
An assignment of a deed of trust is simply the movement of the deed of trust from one party to another, a party that was not originally involved in the deed creation when the property was bought. A corporate assignment is simply an assignment of the deed of trust between different businesses.
What is a deed of trust on a property?
A Deed of Trust is a type of secured real-estate transaction that some states use instead of mortgages.A deed of trust involves three parties: a lender, a borrower, and a trustee. The lender gives the borrower money. In exchange, the borrower gives the lender one or more promissory notes.
What does a deed of trust do?
In financed real estate transactions, trust deeds transfer the legal title of a property to a third partysuch as a bank, escrow company, or title companyto hold until the borrower repays their debt to the lender. Trust deeds are used in place of mortgages in several states.
Is North Carolina a deed of trust state?
In the case of Deed of Trust, the lender can by pass the judicial process and utilize the power of sale to sell the property if the borrower defaults.The following states use Deed of Trusts: Alaska, Arizona, California, District of Columbia, Georgia, Mississippi, Missouri, Nevada, North Carolina, and Virginia.
What is a deed of trust in NC?
In North Carolina, a deed of trust or mortgage acts as a conveyance of the real estate.Under a deed of trust, the borrower (called the "grantor") conveys legal title to the real estate to a third party (called the "trustee") to hold for the benefit of the lender (called the "beneficiary") until the loan is repaid.
What is assignment of mortgage deed of trust?
What is the difference between a mortgage and a deed of trust.
Whether you have a deed of trust or a mortgage, they both serve to assure that a loan is repaid, either to a lender or an individual person. A mortgage only involves two parties the borrower and the lender. A deed of trust adds an additional party, a trustee, who holds the home's title until the loan is repaid.
Is a deed of trust the same as a deed?
A deed conveys ownership; a deed of trust secures a loan.
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Assignments Generally:
Lenders, or holders of mortgages or deeds of trust, often assign mortgages or deeds of trust to other lenders, or third parties. When this is done the assignee (person who received the assignment) steps into the place of the original lender or assignor. To effectuate an assignment, the general rule is that the assignment must be in proper written format and recorded to provide notice of the assignment.
Satisfactions Generally:
Once a mortgage or deed of trust is paid, the holder of the mortgage is required to satisfy the mortgage or deed of trust of record to show that the mortgage or deed of trust is no longer a lien on the property. The general rule is that the satisfaction must be in proper written format and recorded to provide notice of the satisfaction. If the lender fails to record a satisfaction within set time limits, the lender may be responsible for damages set by statute for failure to timely cancel the lien. Depending on your state, a satisfaction may be called a Satisfaction, Cancellation, or Reconveyance. Some states still recognize marginal satisfaction but this is slowly being phased out. A marginal satisfaction is where the holder of the mortgage physically goes to the recording office and enters a satisfaction on the face of the the recorded mortgage, which is attested by the clerk.
North Carolina Law
Assignment:
An assignment must be in writing and recorded.
Demand to Satisfy:
A petitioner may recover damages under this section only if he has given the mortgagee, obligee, beneficiary or other responsible party written notice of his intention to bring an action pursuant to this section. Upon receipt of this notice, the mortgagee, obligee, beneficiary or other responsible party shall have 30 days, in addition to the initial 60-day period, to fulfill the requirements of this section. See code section 45-36.3(2)(b), below.
Recording Satisfaction:
Upon full payoff, within 60 days the lender must either forward the satisfaction document to the borrower, or have the satisfaction recorded of record. See, 45-36.3, below.
Marginal Satisfaction:
A marginal satisfaction may be done in addition to recording the satisfaction document. See 45-37, below.
Any person, institution or agent who fails to comply with this section may be required to pay a civil penalty of not more than one thousand dollars ($1,000) in addition to reasonable attorneys' fees and any other damages awarded by the court to the grantor, trustor or mortgagor, or to a subsequent purchaser of the property from the grantor, trustor or mortgagor. See code section 45-36.3(2)(b) below.
Acknowledgment:
An assignment or satisfaction must contain a proper North Carolina acknowledgment, or other acknowledgment approved by Statute.
North Carolina Statutes
§45-36.2. Register of deeds includes assistants and deputies.
The words "register of deeds" appearing in this Article shall be interpreted to mean "register of deeds, assistant register of deeds, or deputy register of deeds." (1953, c. 848.)
§ 45-36.3. Notification by mortgagee of satisfaction of provisions of deed of trust or mortgage, or other instrument; civil penalty.
(a) After the satisfaction of the provisions of any deed of trust or mortgage, or other instrument intended to secure with real property the payment of money or the performance of any other obligation and registered as required by law, the holder of the evidence of the indebtedness, if it is a single instrument, or a duly authorized agent or attorney of such holder shall within 60 days:
(1) Discharge and release of record such documents and forward the cancelled documents to the grantor, trustor or mortgagor; or,
(2) Alternatively, the holder of the evidence of the indebtedness or a duly authorized agent or attorney of such holder, at the request of the grantor, trustor or mortgagor, shall forward said instrument and the deed of trust or mortgage instrument, with payment and satisfaction acknowledged in accordance with the requirements of G.S. 45-37, to the grantor, trustor or mortgagor.
(b) Any person, institution or agent who fails to comply with this section may be required to pay a civil penalty of not more than one thousand dollars ($1,000) in addition to reasonable attorneys' fees and any other damages awarded by the court to the grantor, trustor or mortgagor, or to a subsequent purchaser of the property from the grantor, trustor or mortgagor. A five hundred dollar ($500.00) civil penalty may be recovered by the grantor, trustor or mortgagor, and a five hundred dollar ($500.00) penalty may be recovered by the purchaser of the property from the grantor, trustor or mortgagor. If that purchaser of the property consists of more than a single grantee, then the civil penalty will be divided equally among all of the grantees. A petitioner may recover damages under this section only if he has given the mortgagee, obligee, beneficiary or other responsible party written notice of his intention to bring an action pursuant to this section. Upon receipt of this notice, the mortgagee, obligee, beneficiary or other responsible party shall have 30 days, in addition to the initial 60-day period, to fulfill the requirements of this section.
(c) Should any person, institution or agent who is not the present holder of the evidence of indebtedness be required to pay a civil penalty, attorneys' fees, or other damages under this section, they will have an action against the holder of the evidence of indebtedness for all sums they were required to pay.
§ 45-37. Discharge of record of mortgages, deeds of trust and other instruments.
(a) Subject to the provisions of G.S. 45-73 relating to secured instruments which secure future advances, any deed of trust or mortgage or other instrument intended to secure the payment of money or the performance of any other obligation registered as required by law may be discharged and released of record in the following manner:
(1) By acknowledgment of the satisfaction of the provisions of such deed of trust, mortgage or other instrument in the presence of the register of deeds by:
a. The trustee,
b. The mortgagee,
c. The legal representative of a trustee or mortgagee, or
d. A duly authorized agent or attorney of any of the above.
The register of deeds is not required to verify or make inquiry concerning the authority of the person acknowledging the satisfaction to do so. Upon acknowledgment of satisfaction, the register of deeds shall record a record of satisfaction as described in G.S. 45-37.2, and may forthwith make upon the margin of the record of such deed of trust, mortgage or other instrument an entry of such acknowledgment of satisfaction which shall be signed by the trustee, mortgagee, legal representative, agent or attorney and witnessed by the register of deeds, who shall also affix his name thereto.
(2) By exhibition of any deed of trust, mortgage or other instrument accompanied with the bond, note, or other instrument thereby secured to the register of deeds, with the endorsement of payment and satisfaction appearing thereon and made by:
a. The obligee,
c. The trustee,
d. An assignee of the obligee, mortgagee, or trustee, or
e. Any chartered banking institution, or savings and loan association, national or state, or credit union, qualified to do business in and having an office in the State of North Carolina, when so endorsed in the name of the institution by an officer thereof.
The register of deeds is not required to verify or make inquiry concerning the authority of the person making the endorsement of payment and satisfaction to do so. Upon exhibition of the instruments, the register of deeds shall cancel the mortgage, deed of trust or other instrument by recording a record of satisfaction as described in G.S. 45-37.2, and may make an entry of satisfaction on the margin of the record. The person so claiming satisfaction, performance or discharge of the debt or other obligation may retain possession of all of the instruments exhibited. The exhibition of the mortgage, deed of trust or other instrument alone to the register of deeds, with endorsement of payment, satisfaction, performance or discharge, shall be sufficient if the mortgage, deed of trust or other instrument itself sets forth the obligation secured or the performance of any other obligation and does not call for or recite any note, bond or other instrument secured by it.
(3) By exhibiting to the register of deeds by:
a. The grantor,
b. The mortgagor, or
c. An agent, attorney or successor in title of the grantor or mortgagor of any mortgage, deed of trust or other instrument intended to secure the payment of money or the performance of any other obligation, together with the bond, note or other instrument secured thereby, or by exhibition of the mortgage, deed of trust or other instrument alone if such instrument itself sets forth the obligation secured or other obligation to be performed and does not call for or recite any note, bond or other instrument secured by it, if at the time of exhibition, all such instruments are more than 10 years old counting from the maturity date of the last obligation secured. If the instrument or instruments so exhibited have an endorsement of partial payment, satisfaction, performance or discharge within the said period of 10 years, the period of 10 years shall be counted from the date of the most recent endorsement.
The register of deeds shall cancel the mortgage, deed of trust, or other instrument by recording a record of satisfaction as described in G.S. 45-37.2, and may make proper entry of cancellation and satisfaction of said instrument on the margin of the record where the same is recorded, whether there be any such entries on the original papers or not.
(4) By exhibition to the register of deeds of any deed of trust given to secure the bearer or holder of any negotiable instruments transferable by delivery, together with all the evidences of indebtedness secured thereby, marked paid and satisfied in full and signed by the bearer or holder thereof.
Upon exhibition of the deed of trust, and the evidences of indebtedness properly marked, the register of deeds shall cancel such deed of trust by recording a record of satisfaction as described in G.S. 45-37.2, and may make an entry of satisfaction upon the margin of the record, which record, or entry if made, shall be valid and binding upon all persons, if no person rightfully entitled to the deed of trust or evidences of indebtedness has previously notified the register of deeds in writing of the loss or theft of the instrument or evidences of indebtedness and has caused the register of deeds to record the notice or loss or theft in a separate document, as required by G.S. 161-14.1.
Upon receipt of written notice of loss or theft of the deed of trust or evidences of indebtedness the register of deeds shall record a record of satisfaction, as described in G.S. 45-37.2, which in this case shall consist of a rerecording of the record of the deed of trust containing the marginal entry and may make on the record of the deed of trust concerned a marginal entry in writing thereof, with the date of receipt of the notice. The deed of trust shall not be canceled after such recording of a record of satisfaction or marginal entry until the ownership of said instrument shall have been lawfully determined. Nothing in this subdivision (4) shall be construed to impair the negotiability of any instrument otherwise properly negotiable, nor to impair the rights of any innocent purchaser for value thereof.
Every entry of acknowledgment of satisfaction or of satisfaction made or witnessed by the register of deeds as provided in subdivision (a)(1) shall operate and have the same effect to release and discharge all the interest of such trustee, mortgagee or representative in such deed or mortgage as if a deed of release or reconveyance thereof had been duly executed and recorded.
(5) By exhibition to the register of deeds of a notice of satisfaction of a deed of trust, mortgage, or other instrument which has been acknowledged by the trustee or the mortgagee before an officer authorized to take acknowledgments. The notice of satisfaction shall be substantially in the form set out in G.S. 47-46.1. The notice of satisfaction shall recite the names of all parties to the original instrument, the amount of the obligation secured, the date of satisfaction of the obligation, and a reference by book and page number to the record of the instrument satisfied. The notice of satisfaction shall be accompanied by the deed of trust, mortgage, or other instrument, or a copy of the instrument, for verification and indexing purposes, which shall not be recorded with the notice.
Upon exhibition of the notice of satisfaction, the register of deeds shall record the notice of satisfaction and cancel the deed of trust, mortgage, or other instrument as required by G.S. 45-37.2. No fee shall be charged for recording any documents or certifying any acknowledgments pursuant to this subdivision. The register of deeds shall not be required to verify or make inquiry concerning the authority of the person executing the notice of satisfaction to do so.
(6) By exhibition to the register of deeds of a certificate of satisfaction of a deed of trust, mortgage, or other instrument that has been acknowledged before an officer authorized to take acknowledgments by the owner of the note, bond, or other evidence of indebtedness secured by the deed of trust or mortgage. The certificate of satisfaction shall be accompanied by the note, bond, or other evidence of indebtedness, if available, with an endorsement of payment and satisfaction by the owner of the note, bond, or other evidence of indebtedness. If such evidence of indebtedness cannot be produced, an affidavit, hereafter referred to as an "affidavit of lost note", signed by the owner of the note, bond, or other evidence of indebtedness, shall be delivered to the register of deeds in lieu of the evidence of indebtedness certifying that the debt has been satisfied and stating: (i) the date of satisfaction; (ii) that the note, bond, or other evidence of indebtedness cannot be found; and (iii) that the person signing the affidavit is the current owner of the note, bond, or other evidence of indebtedness. The certificate of satisfaction shall be substantially in the form set out in G.S. 47-46.2 and shall recite the names of all parties to the original instrument, the amount of the obligation secured, the date of satisfaction of the obligation, and a reference by book and page number to the record of the instrument satisfied. The affidavit of lost note, if necessary, shall be substantially in the form set out in G.S. 47- 46.3. The certificate of satisfaction shall be accompanied by the deed of trust, mortgage, or other instrument, or a copy of the instrument, for verification and indexing purposes, which shall not be recorded with the certificate.
Upon exhibition of the certificate of satisfaction and accompanying evidence of indebtedness endorsed paid and satisfied, or upon exhibition of an affidavit of lost note, the register of deeds shall record the certificate of satisfaction and either the accompanying evidence of indebtedness or the affidavit of lost note, and shall cancel the deed of trust, mortgage, or other instrument as required by G.S. 45-37.2. No fee shall be charged for recording any documents or certifying any acknowledgments pursuant to this subdivision. The register of deeds shall not be required to verify or make inquiry concerning the authority of the person executing the certificate of satisfaction to do so.
(b) It shall be conclusively presumed that the conditions of any deed of trust, mortgage or other instrument securing the payment of money or securing the performance of any other obligation or obligations have been complied with or the debts secured thereby paid or obligations performed, as against creditors or purchasers for valuable consideration from the mortgagor or grantor, from and after the expiration of 15 years from whichever of the following occurs last:
(1) The date when the conditions of such instrument were required by its terms to have been performed, or
(2) The date of maturity of the last installment of debt or interest secured thereby; provided that the holder of the indebtedness secured by such instrument or party secured by any provision thereof may file an affidavit with the register of deeds which affidavit shall specifically state:
(1) The amount of debt unpaid, which is secured by said instrument; or
(2) In what respect any other condition thereof shall not have been complied with; or may record a separate instrument signed by the holder or party secured and witnessed by the register of deeds stating:
(1) Any payments that have been made on the indebtedness or other obligation secured by such instrument including the date and amount of payments and
(2) The amount still due or obligations not performed under the instrument.
Whenever practical, the register of deeds may also enter the information contained in the separate instrument on the margin of the record of the instrument. The effect of the filing of the affidavit or of the instrument recorded made as herein provided shall be to postpone the effective date of the conclusive presumption of satisfaction to a date 15 years from the filing of the affidavit or from the recording of the instrument or the making of the notation. There shall be only one postponement of the effective date of the conclusive presumption provided for herein. The register of deeds shall record the affidavit provided for herein and shall record a separate instrument, as required by G.S. 161-14.1, making reference to the filing of such affidavit and to the book and page where the affidavit is recorded. Whenever practical, the register of deeds may also make such a reference on the margin of the record of the deed of trust, mortgage, or other instrument referred to. This subsection shall not apply to any deed, mortgage, deed of trust or other instrument made or given by any railroad company, or to any agreement of conditional sale, equipment trust agreement, lease, chattel mortgage or other instrument relating to the sale, purchase or lease of railroad equipment or rolling stock, or of other personal property.
(c) Repealed by Session Laws 1991, c. 114, s. 4.
(d) For the purposes of this section "register of deeds" means the register of deeds, his deputies or assistants of the county in which the mortgage, deed of trust, or other instrument intended to secure the payment of money or performance of other obligation is registered.
(e) Any transaction subject to the provisions of the Uniform Commercial Code, Chapter 25 of the General Statutes, is controlled by the provisions of that act and not by this section.
(f) Whenever this section requires a signature or endorsement, that signature or endorsement shall be followed by the name of the person signing or endorsing the document printed, stamped, or typed so as to be clearly legible. The register of deeds may refuse to accept any document when the provisions of this subsection have not been met.
§ 45-37.2. Recording satisfactions of deeds of trusts and mortgages.
(a) When a notice of satisfaction is recorded pursuant to G.S. 45-37(a)(5) or a certificate of satisfaction is recorded pursuant to G.S. 45-37(a)(6), the register of deeds shall make an entry of satisfaction on the notice or certificate and record and index the instrument.
(b) When a deed of trust, mortgage, or other instrument is satisfied by a method other than by means of a notice of satisfaction or certificate of satisfaction, the register of deeds shall record a record of satisfaction consisting of either a separate instrument or all or a portion of the original deed of trust or mortgage rerecorded, and shall make the appropriate entry of satisfaction as provided in G.S. 45-37 on each record of satisfaction. A separate instrument or original deed of trust or mortgage rerecorded pursuant to this subsection shall contain (i) names of all parties to the original instrument, (ii) the amount of the obligation secured, (iii) the date of satisfaction of the obligation, (iv) a reference by book and page number to the record of the instrument satisfied, and (v) the date of recording the notice of satisfaction.
(c) Whenever it is practical to do so, the register of deeds may make a marginal notation of satisfaction in addition to making the recordation required by this section.
§45-41. Recorded deed of release of mortgagee's representative.
The personal representative of any mortgagee or trustee in any mortgage or deed of trust which has heretofore or which may hereafter be registered in the manner required by the laws of this State may discharge and release the same and all property thereby conveyed by deed of quitclaim, release or conveyance executed, acknowledged and recorded as is now prescribed by law for the execution, acknowledgment and registration of deeds and mortgages in this State.
§ 45-42. Satisfaction of corporate mortgages by corporate officers.
All mortgages and deeds in trust executed to a corporation may be satisfied and so marked of record as by law provided for the satisfaction of mortgages and deeds in trust, by any officer of the corporation indicating the office held. For the purposes of recordation and cancellation, such signature shall be deemed to be a certification by the signer that he is an officer and is authorized to execute the satisfaction on behalf of such corporation. Where mortgages or deeds in trust were marked "satisfied" on the records before the twenty-third day of February, 1909, by any president, secretary, treasurer or cashier of any corporation by such officer writing his own name and affixing thereto the title of his office in such corporation, such satisfaction is validated, and is as effective to all intents and purposes as if a deed of release duly executed by such corporation had been made, acknowledged and recorded.
Assignment of Deed
Table of contents, assignment of deed of trust.
An assignment of deed is used to show the deed of a property changing from one party to another, such as when a sale is made. It is used as the written proof to show who has rightful ownership of the property. When someone is purchasing property and decides to sell it before they have paid it off, an assignment of deed form would be used to transfer the rights and everything associated with the property over to the new owner.
When a debtor transfers real estate to a creditor, the Assignment of Deed is the legal document used to record this transfer. This happens when a lawsuit is filed on a property owner for a default in payment and the court’s rule in favor of the creditor; this is one example of when the deed of assignment would be put in to use. It’s used to show that the property is being transferred from the ownership of the defendant and given to the plaintiff that won the case and awarded the property.
It’s important to understand what these documents mean as they pertain to public property records as well as personal background checks into an individual. This could be exactly the type of information you need to help you gain a better understanding on someone or his or her history. It could also be in your own public background information if someone knows where to look for it.
Public records will always contain the history of who owns real property and the details on that property as it exchanges hands or ownership is passed. Anyone who knows how can access basic information about a deed or its assignments.
When a property owner uses an assignment of deed of trust, they are assigning ownership of the property to someone else and this is a very important document that should be kept in a safe and secure place. There are also public records kept on these types of documents and you should be able to request a copy – sometimes at a fee – should you need one.
The Assignment of Deed will also specify the rights the other person will receive along with the deed. As property transfers ownership like this, a recital is usually included as well which shows how many people and the identities of who has owned the property before. This allows you to see how many times the property has transferred hands over the course of its history.
Now that you know more about this particular property document, you will understand it when you use it. Whether you need it for your property or you are searching the property records of someone else for some reason, this information will be very beneficial to you.
We know that these types of legal matters can be confusing to the average person and that’s why we strive to make it easier to understand by giving you the basics here. Assignment of deed of trust documents do not have to confuse you anymore.
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Mortgage lenders frequently buy and sell mortgage loans to an from one another. Although these transactions have little practical effect on borrowers, the legal technicalities can appear overwhelming. Most mortgage lenders in California secure the mortgage loan with a deed of trust. An assignment of deed of trust allows that lender to sell the loan to a different lender.
A deed of trust is the legal document that gives your mortgage lender a lien on your property. The deed of trust authorizes your lender to foreclose and sell your home if you don't make your mortgage payments on time. California lenders can choose to use either a mortgage or a deed of trust, and most use a deed of trust because foreclosure is easier under the deed of trust then under a mortgage.
Significance
When your mortgage lender decides he wants to sell your mortgage loan to another lender, your mortgage lender will sign an assignment of deed of trust in favor of the new lender. This assignment gives the new lender the same lien on your property that your original lender had under the mortgage loan. The new lender essentially steps into the shoes of the old lender.
Your mortgage lender can sell your mortgage and provide an assignment of deed of trust any time before you pay off your mortgage loan. It is not uncommon for a 30-year mortgage loan to transfer to five or more different lenders over the life of the loan.
An assignment of deed of trust has very little effect on the mortgage borrower. The borrower will need to make her mortgage payments to the new lender, but that is the only change the borrower will notice. So, the borrower may have to send checks to a new address, or sign up for automatic payments on the new lender's website, but other than that, the mortgage loan remains exactly as it was before the assignment.
Expert Insight
The freedom for mortgage lenders to buy and sell mortgages to one another is a big reason lenders are able to offer low mortgage interest rates. The freedom to assign the mortgage at any time reduces the lender's risk because the lender can sell the mortgage and raise capital anytime he is short on cash. Do not get worried or frustrated if your lender assigns your mortgage to a new lender.
- "Real Estate Finance Law"; Grant S. Nelson and Dale A. Whitman; 2008
The Constitution Guru has worked as a writer and editor for "BYU Law Review" and "BYU Journal of Public Law." He is an experienced attorney with a law degree and a B.A. degree in history with an emphasis on U.S. Constitutional history, both earned at Brigham Young University.
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Deed Of Trust: What It Is And How It Works
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Updated: Feb 27, 2023, 2:38am
Buying property usually comes with an avalanche of paperwork. It can be a confusing process, especially when it comes to knowing the difference between the various documents you sign. If there’s one contract that’s important to understand, however, it’s the deed of trust.
Depending on your lender and the state you live in, you may or may not need a deed of trust when financing a home purchase. Here’s what you should know about this contract and how it differs from a mortgage .
What Is a Deed Of Trust?
When you finance the purchase of a property, you will sign either a mortgage or deed of trust—but not both. You can take out a mortgage in all 50 U.S. states, while a deed of trust is only available in some states.
A deed of trust is a legal document that secures a real estate transaction. It works similarly to a mortgage, though it’s not quite the same thing. Essentially, it states that a designated third party holds legal title to your property until you’ve paid it off according to the terms of your loan. Deeds of trust are recorded in public records just like a mortgage.
How Does a Deed of Trust Work?
A deed of trust exists so that the lender has some recourse if you don’t pay your loan as agreed. There are three parties involved in a deed of trust: the trustor, the beneficiary and the trustee.
The three parties involved in a deed of trust for a real estate transaction are a:
- Trustor. This is the person whose assets are being held in the trust, also known as the borrower (i.e., you). The title to your home is held by the trust until the loan is paid off. Even so, you remain the equitable owner as long as you keep paying the loan according to the terms outlined in the deed of trust. That means you enjoy all the benefits of being the homeowner, such as the right to live there and gain equity, even though you aren’t the legal title holder.
- Beneficiary. The beneficiary is the party whose investment interest is being protected. Usually, that’s the lender, though it also can be an individual with whom you have a contract.
- Trustee. The trustee holds the legal title of the property while you’re making payments on the loan. Trustees often are title companies, but not always. Once you’ve paid off your loan, the trustee is responsible for dissolving the trust and transferring the title to you.
If you sell the property before it’s paid off, the trustee will use proceeds of the sale to pay the lender the remaining balance (you keep the profits). If you fail to meet your payment obligations and default on the mortgage, the property would go into foreclosure , and the trustee would be responsible for selling the property.
What Is Included in a Deed of Trust
A deed of trust includes many important details about your property, loan and related terms and conditions—much of the same information you would find in your mortgage. Typically, you’ll find the following outlined in a deed of trust:
- The names of the parties involved (the trustee, trustor and beneficiary)
- The original loan amount and repayment terms
- A legal description of the property
- The inception and maturity dates of the loan
- Various clauses, such as acceleration and alienation clauses
- Any riders regarding the clauses outlined
It’s common for a deed of trust to include acceleration and alienation clauses. If you’re delinquent on your loan, it can trigger the acceleration clause—essentially a demand for immediate repayment of the loan. Depending on the terms, this can happen after missing just one payment, though lenders often give a few months of leeway to allow the borrower to catch up on payments. If you fail to do so under the terms outlined in the acceleration clause, the next step is formal foreclosure proceedings.
An alienation clause is also known as a due-on-sale clause and it prevents anyone who buys the property to take on the loan under its current terms. Instead, the alienation clause would dictate that the loan must be paid in full if you sell the property.
Depending on your state, the deed of trust may also include a power of sales clause. This allows for a much faster foreclosure process than if your lender had to involve the state courts in a judicial foreclosure. That said, you won’t be foreclosed on overnight under a power of sales clause; the exact process differs by state and lender. Still, if you’re facing a nonjudicial foreclosure, it can happen in a matter of months. If you want to formally fight the foreclosure, you’ll need to hire a lawyer.
States that allow power of sale foreclosures include: Alabama, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Georgia, Hawaii, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Carolina, Oregon, Rhode Island, South Dakota, Tennessee, Texas, Utah, Washington, West Virginia and Wyoming.
Deed of Trust Vs. Mortgage
The terms “deed of trust” and “mortgage” are often used interchangeably, but they’re really two different things. That said, there are also some similarities. To review, here are the key ways a mortgage and deed of trust are similar as well as different.
Similarities
- Public record: Both documents are recorded with the county clerk.
- Subject to state law: The exact terms of a mortgage or a deed of trust depend on the local state law.
- Contracts, not loans: Neither document serves as the actual loan agreement; a deed of trust or mortgage is a contract that places a lien on your property and dictates how your lender can repossess the property through foreclosure.
Differences
- Parties involved: A mortgage is an agreement between a borrower and lender, while a deed of trust involves a trustor, beneficiary and trustee.
- Foreclosure type: A mortgage requires a judicial foreclosure, while a deed of trust allows for a nonjudicial foreclosure.
- Foreclosure timeline: Judicial foreclosure on a mortgage can be a lengthy process, while nonjudicial foreclosure through a deed of trust is much faster.
What’s the Advantage of a Trust Deed Over a Mortgage?
If the borrower defaults, a trust deed makes it possible for the lender to sell the property without having to go to court. With a mortgage, the lender has to file a foreclosure claim in court and secure a judge’s approval to sell the property. This can mean a lot of expenses for both the borrower and the lender.
If you are investing in a real estate project, a trust deed also has a few advantages over a mortgage. This is because the investor is considered the lender in the transaction, and their name is recorded on the trust deed as such. The investor can receive interest on their “loan” and the principal is repaid in full once the property has been built.
Warranty Deed Vs. Deed of Trust
Both a warranty deed and deed of trust are used to transfer the title of a property from one person to another. However, the difference between these two contracts is who is protected. As you now know, a deed of trust protects the beneficiary (lender). A warranty deed, on the other hand, protects the property owner.
When a property title is transferred with a warranty deed, ownership goes from the seller (also known as the grantor) to the buyer (also known as the grantee). The warranty deed guarantees that the previous owners, or grantor, had full ownership of the property and right to transfer it. In other words, it promises that you won’t inherit any liens or future claims against the property. It provides peace of mind that you own the property outright once the title is in your name.
Are Trust Deeds a Good Idea?
Trust deeds could be a good idea if you are an investor searching for options to earn passive income, while also being protected via the deed. However, investing in real estate is unpredictable and returns are never guaranteed. A trust deed does not reduce the probability of default or ensure that you will recoup your initial investment.
Consult with a financial advisor or investment professional before going down this route.
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Frequently Asked Questions (FAQs)
What is an assignment of deed of trust.
An assignment of trust deed is necessary if a lender sells a loan secured by a trust deed. It assigns the trust deed to whoever buys the loan (such as another lender), granting them all the rights to the property. It is recorded along with the original, making it a matter of public record.
What happens with the deed of trust after you pay off your mortgage?
Once you pay off your loan, the trustee is responsible for releasing the trust and transferring the title to you. You now have full ownership of the home.
Can you sell a house with a deed of trust?
Yes, you can. However, if you are selling the house for less than the loan amount, you will need the lender’s approval. Once the property is sold, the trustee uses the proceeds to pay the lender what they are still owed. The borrower then gets any money that is left over.
How long does a deed of trust last?
A deed of trust, like a mortgage, typically has a maturity date, which is when the loan must be paid off in full. That date will vary transaction to transaction. Sometimes a deed of trust won’t have a maturity date. In this scenario, state law dictates the number of years a deed of trust lasts, anywhere from 10 to 60 years after it was recorded.
What is a purchase money deed of trust?
A purchase money deed of trust secures the funds used to buy the property. It also gives the buyer priority over any liens or encumbrances against them
Does a deed of trust show ownership?
No. A deed of trust is a legal document that secures a real estate transaction. It only shows that a designated third party holds legal title—i.e. ownership—to your property until you’ve paid it off, according to the terms of your loan.
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What is an Assignment of Trust Deed?
Assigning a deed of trust transfers it to a new lender.
Ryan McVay/Photodisc/Getty Images
More Articles
- 1. How Can an Heir Take Title to a Deed That Has an Outstanding Mortgage?
- 2. Warranty Deed Vs. Deed of Trust
- 3. Types of Mortgage Instruments
A trust deed, formally known as a deed of trust, is used with mortgages in some states to streamline things in the event of foreclosure. As with normal mortgages, the lender may sometimes choose to assign, or transfer, the deed of trust to another lender. The assignment doesn't change the borrower's obligations under the deed of trust; she will be equally obligated to repay the new lender as well.
Deed of Trust
Mortgages using a deed of trust have the same legal effect as other types of mortgages: They allow a property buyer or owner to take out a loan that uses the property as security on that loan. But the deed of trust mortgage differs slightly by using a third party, the trustee, as part of the transaction. In order to secure the loan, the property owner transfers title in the property to the trustee via deed of trust. The trustee then holds the deed over the life of the mortgage.
Use of Deed
The trustee holds the deed of trust as evidence of his right to take title to the property on the lender's behalf if the borrower defaults, or fails to perform, on the loan. In a typical mortgage scenario, the lender must go to court for the right to foreclose on the property. In a deed of trust scenario, the lender gives the trustee the right to foreclose on the deed of trust by selling the property.
Assigning Trust Deeds
For financial benefit, lenders sometimes choose to sell their rights in deed of trust mortgages to other lenders. This process is known as assignment of the mortgage. Unless the language of the mortgage or deed of trust prohibits it, a lender may assign the deed of trust at any time over the life of the mortgage, and many mortgages go through several lenders over their lifetime.
Effect of Assignment
Assignment of a deed of trust will not affect the borrower's rights and obligations regarding the mortgage. The new lender will typically inform the borrower of the transfer, and the borrower may need to send mortgage payments to a new company, but otherwise, the assignment is not that significant from the borrower's end. If the borrower is unhappy about the assignment, she has several options: pay off the mortgage outright; take out a new mortgage with a different company in order to pay off the old one; or attempt to negotiate with the new lender to change the terms of the loan.
- Cornell Legal Information Institute: Deed of Trust
- U.S. Legal: Deed of Trust Law and Legal Definition
- StopForeclosureFraud.com: What Is an Assignment of Mortgage?
- 'Lectric Law Library: Assignment of Mortgage or Deed of Trust
Erika Johansen is a lifelong writer with a Master of Fine Arts from the Iowa Writers' Workshop and editorial experience in scholastic publication. She has written articles for various websites.
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- Meet the Editors
What's the difference between a mortgage assignment and an endorsement (transfer) of the note?
Banks use assignments and endorsements to transfer mortgages, deeds of trust, and promissory notes to other banks..
When you take out a loan to buy a home, you're usually required to sign two documents: a mortgage (or deed of trust ) and a promissory note. "Assignments" and "endorsements" are how these documents get transferred between banks.
If you're facing a foreclosure and the foreclosing bank doesn't have the proper endorsements and assignments, you might have a defense to the foreclosure.
Understanding Mortgage Transactions
To fully understand the difference between an assignment of mortgage (or deed of trust) and endorsement of the note, you must understand the basic terms and documents involved in a residential mortgage transaction.
- Mortgagee and mortgagor. In a mortgage, a "mortgagee" is the lender. The mortgagee gives the loan to the "mortgagor," the homeowner/borrower.
- Loan documents. Again, the loan transaction consists of two main documents: the mortgage (or deed of trust) and a promissory note. The mortgage or deed of trust is the document that pledges the property as security for the debt and permits a lender to foreclosure if you fail to make the monthly payments. The promissory note is the IOU that contains the promise to repay the loan. The purpose of the mortgage or deed of trust is to provide security for the loan that's evidenced by a promissory note.
- Loan Transfers. Banks often sell and buy mortgages from each other. An "assignment" is the document that is the legal record of this transfer from one mortgagee to another. In a typical transaction, when the mortgagee sells the debt to another bank, an assignment is recorded, and the promissory note is endorsed (signed over) to the new bank.
These documents are separate, and each has its own distinct set of rules that govern how they're exchanged between banks.
Assignments of Mortgages and Deeds of Trust
An assignment transfers all the original mortgagee's interest under the mortgage or deed of trust to the new bank. Generally, the mortgage or deed of trust is recorded shortly after the mortgagors sign it, and, if the mortgage is subsequently transferred, each assignment is recorded in the county land records.
Courts have dismissed some foreclosure cases when the foreclosing party didn't have an assignment. But some states don't allow borrowers to challenge the legality of assignments, saying they don't have standing .
And certain states follow the general rule that "a mortgage follows the note." So, a missing assignment of mortgage won't necessarily stop a foreclosure. If the foreclosing party is clearly entitled to enforce the promissory note, the court may allow a foreclosure to go ahead even if a valid assignment doesn't exist. Whether a written, recorded assignment is needed depends on state law.
Endorsements of Promissory Notes
When a loan changes hands, the promissory note is endorsed (signed over) to the new owner of the loan. In some cases, the note is endorsed in blank, which makes it a bearer instrument under Article 3 of the Uniform Commercial Code. So, any party that possesses the note has the legal authority to enforce it.
A n entity that owns the loan has standing to initiate a foreclosure .
Talk to an Attorney
Assignments and endorsements prove which party owns the debt and, therefore, may bring the foreclosure action. If the documentation isn't correct or complete in your case, you might have a defense against a foreclosure.
If you're facing a foreclosure and think the foreclosing party in your case doesn't have the right documentation, consider talking to an attorney who can give you information about the laws in your state, let you know whether an argument based on the right to foreclose, called "standing," is likely to be successful in your case, and give you advice about what to do in your particular circumstances.
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What Is a Trust Deed?
Understanding trust deeds, trust deed vs. mortgage, what is included in a trust deed, foreclosures and trust deeds.
- Investing in Trust Deeds
- Real-World Example
Frequently Asked Questions
- Trust Deed FAQs
The Bottom Line
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Trust Deed: What It Is, How It Works, Example Form
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A trust deed—also known as a deed of trust —is a document sometimes used in real estate transactions in the U.S. It is a document that comes into play when one party has taken out a loan from another party to purchase a property. The trust deed represents an agreement between the borrower and a lender to have the property held in trust by a neutral and independent third party until the loan is paid off.
Although trust deeds are less common than they once were, some 20 states still mandate the use of one, rather than a mortgage , when financing is involved in the purchase of real estate. Trust deeds are common in Alaska, Arizona, California, Colorado, Idaho, Illinois, Mississippi, Missouri, Montana, North Carolina, Tennessee, Texas, Virginia, and West Virginia.
A few states—such as Kentucky, Maryland, and South Dakota—allow the use of both trust deeds and mortgages.
Key Takeaways
- In financed real estate transactions, trust deeds transfer the legal title of a property to a third party—such as a bank, escrow company, or title company—to hold until the borrower repays their debt to the lender.
- Trust deeds are used in place of mortgages in several states.
- Investing in trust deeds can provide a high-yielding income stream.
Click Play to Learn Everything You Should Know About Trust Deeds
A trust deed is a transaction between three parties:
- Lenders , officially known as beneficiaries . These are the interests a trust is supposed to protect.
- A borrower , otherwise known as a trustor . This is the person who establishes a trust.
- A trustee , a third party charged with holding the entrusted property until a loan or debt is paid for in full.
In a real estate transaction—the purchase of a home, say—a lender gives the borrower money in exchange for one or more promissory notes linked to a trust deed. This deed transfers legal title to the real property to an impartial trustee , typically a title company, escrow company, or bank, which holds it as collateral for the promissory notes . The equitable title—the right to obtain full ownership—remains with the borrower, as does full use of and responsibility for the property.
This state of affairs continues throughout the repayment period of the loan. The trustee holds the legal title until the borrower pays the debt in full, at which point the title to the property transfers to the borrower. If the borrower defaults on the loan, the trustee takes full control of the property.
Trust deeds and mortgages are both used in bank and private loans for creating liens on real estate, and both are typically recorded as debt in the county where the property is located. However, there are some differences.
Number of Parties
A mortgage involves two parties: a borrower (or mortgagor) and a lender (or mortgagee). When a borrower signs a mortgage, they pledge the property as security to the lender to ensure repayment.
In contrast, a trust deed involves three parties: a borrower (or trustor), a lender (or beneficiary), and the trustee. The trustee holds title to the lien for the lender's benefit; if the borrower defaults, the trustee will initiate and complete the foreclosure process at the lender's request.
Type of Foreclosure
In the event of default, a deed of trust will result in different foreclosure procedures than a mortgage. A defaulted mortgage will result in a judicial foreclosure, meaning that the lender will have to secure a court order. Trust deeds go through a non-judicial foreclosure, provided that they include a power-of-sale clause.
Judicial foreclosures are more expensive and time-consuming than non-judicial foreclosures. This means that in states that allow them, a deed of trust is preferable to a mortgage from the lender's point of view.
Contrary to popular usage, a mortgage is not technically a loan to buy a property; it's an agreement that pledges the property as collateral for the loan.
A deed of trust will include the same type of information stated in a mortgage document, such as:
- The identities of the borrower, lender, and trustee
- A full description of the property to be placed in trust
- Any restrictions or requirements on the use of the property while it is in trust
- The terms of the loan, include principal, monthly payments, and interest rate
- The terms of any late fees and penalties in the event of repayment
In addition, a trust deed will also include a power of sale clause that gives the trustee the right to sell the property if the borrower defaults.
Mortgages and trust deeds have different foreclosure processes. A judicial foreclosure is a court-supervised process enforced when the lender files a lawsuit against the borrower for defaulting on a mortgage. The process is time-consuming and expensive.
Also, if the foreclosed-property auction doesn't bring in enough money to pay off the promissory note, the lender may file a deficiency judgment against the borrower, suing for the balance. However, even after the property is sold, the borrower has the right of redemption : They may repay the lender within a set amount of time and acquire the property title.
In contrast, a trust deed lets the lender commence a faster and less-expensive non-judicial foreclosure, bypassing the court system and adhering to the procedures outlined in the trust deed and state law. If the borrower does not make the loan current, the property is put up for auction through a trustee's sale.
The title transfers from the trustee to the new owner through the trustee's deed after the sale. When there are no bidders at the trustee sale, the property reverts to the lender through a trustee's deed. Once the property is sold, the borrower has no right of redemption.
Furthermore, a trustee has the responsibility of paying the proceeds from the sale to the borrower and lender after the sale is finalized. The trustee will pay the lender the amount left over on the debt and pay the borrower anything that surpasses that amount, thereby allowing the lender to purchase the property.
Pros and Cons of Investing in Trust Deeds
Investors who are searching for juicy yields sometimes turn to the real estate sector—in particular, trust deeds.
In trust deed investing, the investor lends money to a developer working on a real estate project. The investor's name goes on the deed of trust as the lender. The investor collects interest on his loan; when the project is finished his principal is returned to him in full. A trust deed broker usually facilitates the deal.
High-yielding income stream
Portfolio diversification
Illiquidity
No capital appreciation
What sort of developer enters this arrangement? Banks are often reluctant to lend to certain types of developments, such as mid-size commercial projects—too small for the big lenders, too big for the small ones—or developers with poor track records or too many loans. Cautious lenders may also move too slowly for developers up against a tight deadline for commencing or completing a project.
Developers like these are often in a bit of a crunch. For these reasons, trust deed investors may often expect high-interest rates on their money. They can reap the benefits of diversifying into a different asset class, without having to be experts in real-estate construction or management: This is a passive investment .
Trust deed investing has certain risks and disadvantages. Unlike stocks, real estate investments are not liquid , meaning investors cannot retrieve their money on demand. Also, investors can expect only the interest the loan generates; any additional capital appreciation is unlikely.
Invested parties may exploit any legal discrepancies in the trust deed, causing costly legal entanglements that may endanger the investment. The typical investor with little experience may have difficulty, as it takes specific expertise to find credible and trustworthy developers, projects, and brokers.
Real-World Example of a Trust Deed
A short form deed of trust document used in Austin County, Texas , covers the requirements for most lenders. The form begins with a definition of terms and spaces for the borrower, lender, and trustee to fill in their names. The amount being borrowed and the address of the property are also required.
After this section, the document goes on to specify the transfer of rights in the property and uniform covenants including:
- Details about payment of principal and interest
- Escrow funds
- Property insurance and structure maintenance
- Structure occupancy—stipulating the borrower must take up residency within 60 days
The form also includes nonuniform covenants, which specify default or breach of any of the agreement terms. And it specifies that the loan the document deals with is not a home equity loan —that is, something the borrower will receive cash from—but one for purchasing the property.
The deed of trust ends with a space for the borrower's signature, which must be done in the presence of a notary and two witnesses, who also sign.
What Is Assignment in a Deed of Trust?
In real estate law, " assignment " is simply the transfer of a deed of trust from one party to another. This usually happens when the beneficiary of a trust deed sells their loan to another lender.
What Is Reconveyance in a Deed of Trust?
In real estate law, reconveyance means the transfer of a property from a lender or trustee to a borrower. This usually happens at the end of a mortgage or other loan, when the borrower has satisfied the terms of their debt.
Who Can Be a Trustee in a Deed of Trust?
Some states have laws limiting who can act as a trustee in a deed of trust. In these states, the trustee must be a bank, credit union, thrift, title insurance company, attorney, or other company specifically authorized to hold a trust. In other states, anyone can act as a trustee.
Trust deeds are an alternative to mortgages in certain states. Instead of an agreement directly between a lender and a borrower, a trust deed places the title of a property in the hands of a third party, or trustee. Only after the borrower has satisfied the terms of their debt to the lender will the property be fully transferred to the borrower.
Rocket Lawyer. " Which States Allow Deeds of Trust? "
Legal Information Institute. " Non-judicial Foreclosure ."
Legal Zoom. " Naming a Trustee in Your Deed of Trust ."
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Deed of Reconveyance
A document that transfers the title of a property to the borrower from the bank or mortgage holder once a mortgage is paid of
What is a Deed of Reconveyance?
A deed of reconveyance refers to a document that transfers the title of a property to the trustor from the trustee once a mortgage is paid off. The trustor is the borrower of debt for the purchase of the property. The trustee may be a bank or mortgage holder.
A deed of reconveyance is important to understand for those looking to take out a mortgage to purchase a property. The document indicates that the borrower is now the sole owner of the property, and it confirms that the mortgage loan has been paid in full.
- A deed of reconveyance refers to a document that transfers the title of a property to the borrower from the bank or mortgage holder once a mortgage is paid off.
- It is used to clear the deed of trust from the title to the property. The deed of reconveyance is completed and signed by the trustee, whose signature must be notarized.
- With no record of a deed of reconveyance in the record’s office, the homeowner may come across difficulties and complications when trying to sell the home.
Understanding a Deed of Reconveyance
When an individual decides to finance their purchase of a property with a mortgage, a deed of trust is used. A deed of trust is an agreement that puts the title of the property in trust, with the trustee as the beneficiary. Only until the debt is paid off by the borrower can a deed of reconveyance then be used to clear the deed of trust from the title to the property.
The document is signed by the trustee, whose signature must be notarized. It means that the signature must be legalized by a notary public to ensure the accuracy of the document. Then, to complete and recognize the transfer, it is required to submit and file the document to the municipal or provincial records office. The exact process for processing a deed of reconveyance may vary across different provinces and jurisdictions.
The deed of trust permits the bank to penalize the borrower. If the mortgage loan is not paid for, it can lead to the seizure of the property and foreclosure . In seizing the property, the bank will use the property as collateral and sell it to attempt to recover the remaining mortgage balance.
On the other hand, with the deed of reconveyance, the bank no longer has legal ownership of the property. It means the homeowner can now transfer the property at any time.
No Record of a Deed of Reconveyance
When no deed of reconveyance is recorded with the record’s office, it creates a title issue to the property. The deed of trust will remain a burden against the property, and the homeowner may come across difficulties when trying to sell the home. There may also be further complications with minor mistakes in the document, and it is important to look out for errors.
Essentially, when the title company conducts its title search, the recorder’s office will have no record of a lien release on the property. A lien refers to a legal right to claim a security interest in a property provided by the property’s owner to the creditor.
The title company helps verify that the title of the property can be transferred from solely the seller to the buyer, with no other parties involved. Ultimately, a homeowner must ensure that there are no liens against the property from any lender when trying to sell.
Example of a Deed of Reconveyance
As an example, say Sally decides to purchase a house, and in doing so, she needs to take out a mortgage of $300,000 from the bank. The new property acts as collateral under the deed of trust. Once Sally has fully paid off her mortgage, the trustee must then complete a “Request for Reconveyance.”
Sally must ensure that the lender has filed a deed of reconveyance when all debt repayments have been made. It will indicate that the mortgage loan is paid in full, and the reconveyance shows that she has all the title and ownership of the property.
Related Readings
CFI offers the Commercial Banking & Credit Analyst (CBCA)® certification program for those looking to take their careers to the next level. To keep learning and developing your knowledge base, please explore the additional relevant resources below:
- Declaration of Trust
- Deed of Release
- Home Equity Loan
- Quality of Collateral
- See all commercial lending resources
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- Classes/Videos
- Online Catalog
Deeds and Affidavits
Deeds and affidavits are used to change, add, or remove names on real estate. Changes to the title (ownership record) of a property must be recorded with the County Recorder where the real estate is located.
Adding or changing names: Sales, gifts, divorces, trusts
Deeds are used when the current owner agrees to add or change names on the title. Common reasons are the sale of the property, adding family members to the title to avoid probate, one spouse receiving the property in a divorce, or the owners transferring the property into a trust.
Death of property owner or trustee
Affidavits are used when the property is owned by more than one person, or by a trust, and an owner or trustee dies. The remaining owner(s) or the new trustee record an affidavit of death to remove the deceased from the title. The estate representative must also file a “ Change in Ownership Statement Death of Real Property Owner ” with the county assessor’s office.
If a property owner dies, and no affidavit applies, the property usually must go through probate court to be officially transferred to its new owner(s).
Sacramento County Real Estate Records
www.ccr.saccounty.net
Phone: (916) 874-6334
Main Office: 600 8th St, Sacramento, CA 95814
County Service Centers: ■ East: 5229 Hazel Avenue, Suite B, Fair Oaks, CA 95628 ■ South: 8239 E. Stockton Boulevard, Suite A, Sacramento, CA 95828 Note: Same-day document recording not available at County Service Centers. Documents are accepted for recording within 2 business days.
Services: Recording and indexing real estate transactions; issuing marriage licenses and conducting marriages; copies of vital statistics documents (birth, marriage, and death certificates); professional registrations (fictitious business name, notaries, process servers, legal document assistants/unlawful detainer assistants, professional photocopiers).
Online Index of Recorded Documents : Online public access to the index of recorded documents allows you to search for documents recorded in Sacramento County since 1849. The online index is useful for identifying documents of interest for further research or to order copies. You will not be able to view the actual document.
www.assessor.saccounty.net
3701 Power Inn Rd, Suite 3000, Sacramento, CA 95826
Property Transfer Information: (916) 875-0750
Real Property Assessment Information: (916) 875-0700
Services: The Assessor is responsible for locating taxable property in the County, assessing the value, identifying the owner, and publishing annual and supplemental assessment rolls.
Assessor’s Parcel Viewer : Use Parcel Viewer to view property maps, parcel information and recent sales.
The Sacramento County Public Law Library has prepared forms for some common situations relating to real property. For other situations, you may need to create your own forms, or obtain forms from the Sacramento County Assessor. Many of our Research Guides have instructions and samples for commonly-used forms.
Form Resources
The steps you need to take depend on several factors. Talk to a lawyer or visit the Law Library to research your options. One excellent resource is How to Probate an Estate in California , from Nolo Press. The librarians cannot advise you on what to do.
Research Guides
The Law Librarians have created these research guides as an aid for those starting a legal research project. These guides recommend print and electronic resources that will help you find answers to your law-related questions. Many guides provide step-by-step information, as well as sample forms, for common legal procedures.
- Adding or Changing Names on Property (Completing and Recording Deeds)
- Transfer on Death (TOD) Deed: Naming Beneficiaries and Revoking TOD Deeds
- Transferring Title to Beneficiaries after a Transfer on Death Deed Takes Effect
Common Questions
The Law Librarians write brief articles on a variety of common legal issues.
- Making Real Estate Changes Official: Recorder's Office
- Keeping your House Out of Probate
- Reverse Mortgages
The Law Librarians created these pamphlets in response to frequently asked questions on subjects not appropriate for more substantive guides.
- Transfer on Death Deed Pamphlet
- Transfer on Death Deeds
Related Websites
These websites provide information about real estate and about transferring property after death.
California Insurance Department offers information on various forms of homeowner insurance.
Information for homeowers on forms of title, insurance and escrow, probate, and more.
Alameda County’s guide to simplified probate procedures, including clearing real estate title after a death.
Search Sacramento County Public Law Library
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An assignment of a deed of trust is simply the movement of the deed of trust from one party to another, a party that was not originally involved in the deed creation when the property was bought. A corporate assignment is simply an assignment of the deed of trust between different businesses.
When a lender sells the loan, it assigns the trust deed to the buyer. "Assignment" means to convey a claim or a right to another party, known as the "assignee." This is done by creating another legal document — the assignment of trust deed — and having it signed by both buyer and seller.
A deed of trust (also known as a trust deed) is a document sometimes used in financed real estate transactions, generally instead of a mortgage. Deeds of trust transfer the legal title of...
Assignment of Deed of Trust means each Collateral Assignment of Deed of Trust and Related Documents executed and delivered by Borrower to Lender in connection with any Collateral Loan to be secured by real property and included in the Collateral Loan Document Package, substantially in the form attached hereto as Exhibit B and incorporated herein …
Assignment of Deed of Trust by Corporate Mortgage Holder Assignments Generally: Lenders, or holders of mortgages or deeds of trust, often assign mortgages or deeds of trust to other lenders, or third parties. When this is done the assignee (person who received the assignment) steps into the place of the original lender or assignor.
What does corporate assignment of deed of trust mean? An assignment of a deed of trust is simply the movement of the deed of trust from one party to another, a party that was not originally involved in the deed creation when the property was bought. A corporate assignment is simply an assignment of the deed of trust between different businesses.
An assignment of a deed of trust is simply the movement of the deed of trust from one party to another, a party that was not originally involved in the deed creation when the property was bought. A corporate assignment is simply an assignment of the deed of trust between different businesses.
An assignment of trust deed is a document that lenders use when they sell loans secured by trust deeds. While they can freely sell the promissory notes between themselves, the trust deeds...
Assignment of Deed of Trust An assignment of deed is used to show the deed of a property changing from one party to another, such as when a sale is made. It is used as the written proof to show who has rightful ownership of the property.
An assignment of deed of trust allows that lender to sell the loan to a different lender. Background A deed of trust is the legal document that gives your mortgage lender a lien on your...
A deed of trust is a legal document that secures a real estate transaction. It works similarly to a mortgage, though it's not quite the same thing. Essentially, it states that a designated...
A trust deed, formally known as a deed of trust, is used with mortgages in some states to streamline things in the event of foreclosure. As with normal mortgages, the lender may sometimes...
An assignment transfers all the original mortgagee's interest under the mortgage or deed of trust to the new bank. Generally, the mortgage or deed of trust is recorded shortly after the mortgagors sign it, and, if the mortgage is subsequently transferred, each assignment is recorded in the county land records.
A trust deed is a transaction between three parties: Lenders, officially known as beneficiaries. These are the interests a trust is supposed to protect. A borrower, otherwise known as a...
provided that the deed of trust or assignment of the deed of trust or collateral documents in favor of the lender or purchaser is recorded in the office of the county recorder in the county in which the security property is located, and the note is made payable to the lender or is endorsed or assigned to the purchaser (emphasis added)."
A deed of trust is an agreement that puts the title of the property in trust, with the trustee as the beneficiary. Only until the debt is paid off by the borrower can a deed of reconveyance then be used to clear the deed of trust from the title to the property. The document is signed by the trustee, whose signature must be notarized.
Affidavits are used when the property is owned by more than one person, or by a trust, and an owner or trustee dies. The remaining owner (s) or the new trustee record an affidavit of death to remove the deceased from the title. The estate representative must also file a " Change in Ownership Statement Death of Real Property Owner " with the ...
The definition of "Notes" appearing in the Original Deed of Trust is amended and restated to read as follows: 1.2 Applicable Law : This Amendment shall be governed by and construed according to the internal laws of the State of California from time to time in effect, without giving affect to its choice of law principles.