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Thursday, May 14, 2020

What is a Deed of Trust in ArizonaTrust

So, you have decided to buy a home in the great state of Arizona. Expect to sign your John Hancock to several documents. The is one you may not be too familiar with. In this article, you will learn all about what a deed of trust is used for.

Buying a home is one of the biggest decisions you will ever make. Information will be thrown at you right and left, and there are numerous documents you will need to sign. In many states, homeowners will use a mortgage for their property loan, but in other states, deeds of trust are more common. In Arizona, you will most likely use a deed of trust. Although mortgages and deeds of trust serve the same purpose, there are significant differences that all prospective buyers should be aware of before buying their home.

The deed of trust and mortgage are both executed and recorded in the county the property is located. They are both the same as in the property is used as collateral for the loan. Also, any future buyer will need to pay off the loan whether it is a deed of trust or a mortgage, and on a deed of trust, they will receive the deed of trust.

A mortgage operates in the same way in Arizona. One difference between the two documents is the parties involved. In a mortgage, there are only two parties: the borrower and the lender. The lender is typically a bank or private money lender. When a deed of trust is used there are three parties involved: the trustor, the trustee, and the lender. The trustee holds the title to the deed until the loan is paid off. Generally, the trustee is a business such as a title company or escrow company or individual such as an attorney. The trustee and the lender typically work together. In the case of a foreclosure, the trustee will be the party to begin foreclosure proceedings at the request of the lender.

The biggest difference between a mortgage and a deed of trust is foreclosure

What happens after a borrower defaults on a loan is called foreclosure and serves as the biggest difference between the two loans. Under Arizona law, a mortgage can only be foreclosed judicially which means in a court of law. That means a lawsuit would have to be filed and won to allow the lender to sell the property. This can be a lengthy and expensive process.

Deeds of trust, however, can be foreclosed with judicially or nonjudicially according to Arizona state law. Nonjudicial foreclosures only require recording a Notice of Trustee’s Sale which includes waiting at least 90 days and then legally selling the property.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
© 2019 Level 4 Funding LLC. All Rights Reserved.

What is a Deed of Trust?

Most of us are familiar with a mortgage. However, in many states, deeds of trust are used in place of mortgages and the role they play in the home buying process. But what is a deed of trust?

A deed of trust secures real estate transactions and includes three necessary parties: lender, borrower, and a trustee. The borrower receives money from the lender in exchange for a promissory note, and the trustee holds the legal property title until the loan is paid in full.

A deed of trust has many components that are similar to a mortgage and other components that work as a traditional property deed. Just like a traditional deed, a deed of trust has a detailed description of the property. This is called a property description. A property description describes what the trustor has rights to as long as they follow all terms and guidelines in the trust deed.

The agreed-upon purchase price of the home sans the down payment is the initial loan amount. The initial loan amount is what the lender is giving to the purchaser and is the exact amount that must be paid off at the end of the loan to dissolve the trust.

The trustee holds the legal title during the time the loan is being paid on. The role of the trustee is to be completely impartial when it comes to the deed of trust. As long as the loan proceeds the way it should the trustee has two possible options. If the trustor chooses to sell the property before the loan is paid off, the trustee pays the lender the proceeds of the sale that cover the remaining amount of money due on the loan. If the loan is paid off before the end of the loan, the trustee is responsible to dissolve the trust and give the trustor the legal title.

Do I have a Deed of Trust or a Mortgage?

The only major difference between a mortgage and a deed of trust that truly affect homeowners is when foreclosure is an issue. If you aren’t sure which was used to secure your loan be sure to review the documents you received at the time you closed escrow on your property. You can always contact your lender or call your local land records office. Although certain states use a deed of trust versus a mortgage, none use both. Deeds of trust are recorded in the same way mortgages are with the county clerk.

Mortgage Versus Deed of Trust

There are many similarities between these two loan assurances. In this article, we will break down some general information.

Why would you use a deed of trust? A deed of trust is used when traditional lending institutions are not being used. Certain states require homeowners to use a deed of trust instead of a mortgage. Regardless if you have a mortgage or a deed of trust their main purpose is to ensure the loan is paid in full. A mortgage involves only two parties, the lender and the borrower. A deed of trust includes a trustee who is responsible for holding the property’s title until the loan is repaid. In the case of default, the trustee will start the foreclosure process. In a mortgage, the lender is responsible for beginning foreclosure proceedings.

Be sure to take careful note of the terms outlined in the Closing Disclosure. These terms are where you will find particular differences between trusts and deeds and mortgages when it comes to foreclosure. In the event of the death of the trustor, a surviving spouse or family member can continue to keep making payments on the loan and take over as the trustor as long as they qualify.

With a traditional loan, lenders can impose certain restrictions and conditions in order for borrowers to qualify. Lenders may require the borrower to occupy the property as their primary residence for a specified period of time or pay mortgage insurance on the property. Be sure to discuss prepayment penalties with your lender.

There are little things borrowers need to be aware of when working with a deed of trust instead of a traditional mortgage. When it comes to foreclosures the process works differently. A deed of trust speeds up the foreclosure process because it is a nonjudicial foreclosure which means the courts don’t get involved. Acceleration and alienation are similar. An acceleration clause goes into effect once the borrower is behind on their payments. Depending on the terms of the acceleration clause it could happen after three months or even after just one missed payment. Depending upon the lender the borrower may have ample time to bring their payment current. An alienation clause is referred to as a due-on-sale clause. If the lender doesn’t want to have anyone who buys the property to assume the loan under current terms, they get an alienation clause in the deed of trust. These are a contractual language that ensures the borrower repays the loan when a sale or transfer occurs. Alienation clauses protect the lenders.

Deed of Trust or Mortgage? Which One is Best For You?

Deciding whether to use a mortgage or a deed of trust when buying your home depends on which state the property is located. For both a deed of trust and a mortgage the property serves as collateral in the case the borrower defaults.

Wednesday, May 13, 2020

Understanding a Deed of Trust

Using a deed of trust to purchase real estate or borrow money using your property as collateral, you must have a legitimate trustee as part of the transaction.

What exactly is a deed of trust? A deed of trust is a legal document used in a real estate transaction when the borrower, or purchaser, borrows money for the purchase of property and uses that property as collateral. In most states, a mortgage is what is used to borrow money for the use of buying real estate. However, some states like California and Arizona do use deeds of trust. If you are not sure if your state uses mortgages, trusts of deeds, or both, contact any real estate broker in your area.

A deed of trust always involves three parties: the borrower, the lender, and the trustee. The borrower is called the trustor and the lender is the beneficiary. The trustee can be an individual or a business. Their role is to hold the title to the property until the trustor has paid the loan in full. Once the loan has been paid off, the lender notifies the trustee and the title is transferred to the trustor.

Sometimes deeds of trust are called mortgages. However, the documents are quite different. Unlike a deed of trust, a mortgage has only three parties: the borrower, also known as the mortgager, and the lender who is also known as the mortgagee. In the case of mortgages, the borrower holds the title to the property while the lender holds a lien on the property until the loan is repaid. Once the loan is repaid, the lender records a release of the mortgage and the lien is no more. Deeds of trust tend to be the favorite of lenders in the case of foreclosure. With a deed of trust, the foreclosure process is simpler. The foreclosure process, with a deed of trust, is nonjudicial, which means the courts are not involved.

Hearing, “deed of trust” can sound scary if you don’t know what it is.

A deed of trust is almost identical to a mortgage sans the differences mentioned in this article. A deed of trust is still a loan. The only big difference is the lender and the extra party involved.

A Look Into Trust Deed Investing

If you are looking to make some extra cash and have some fun, then start looking into Trust deed investing because it’s just about the easiest way to do what you want to do and make the cash you want to make.

And if you asked us, there’s no time like the present to start trust deed investing.

So you may have heard that trust deed investing is a little like a mortgage, and it is, but it has a few things that a mortgage does not. For example, a trust deed investment has three primaries in the trust deed investment transaction that a mortgage does not. They happen to be the borrower or the trustor, the lender or the beneficiary, and the trustee. The Trustee is the person who actually purchases the property and in the end, if the trustee is paid as promised, then they won’t have any claim to the property. Remember though that in a trust deed investment, if the borrower does in fact default then trustee takes back the mortgaged property.

We do offer one thing to look out for when you make a trust deed investment and that’s for you to look into properties you like when you make your Trust Deed Investments San Fransico : only look into property that you think you would like to own. There’s always a chance you could make a trust deed investment and end up owning the property, so make sure it is something that you actually like!

Also, consider getting yourself a secured debt or if you’d rather call them, non-performing notes for sale. These non-performing notes for sale could result in some big money for you when you buy them at a steep discount! Consider it as you look into Trust Deed Investments San Fransico . Good luck with your future endeavors!

Learning About Trust Deed Investments San Fransico

When you think about it, Trust deed investing is a fantastically simple way to get the extra cash and profits that you’re looking for and there’s never been a better time to really get your Trust Deed Investments San Fransico started.

If you’re on this page then there’s a good chance you already know quite a bit about trust deed investments, but we can go ahead and get you up to speed if you don’t. You could say that trust deed investments are a little like a mortgage, and that’s true, but they have some great differences as well. For example, a trust deed investment has three primaries in the trust deed investment transaction that a mortgage does not. They happen to be the borrower or the trustor, the lender or the beneficiary, and the trustee. The Trustee is the person who actually purchases the property and in the end, if the trustee is paid as promised, then they won’t have any claim to the property. Remember though that in a trust deed investment, if the borrower does in fact default then trustee takes back the mortgaged property.

As you get into trust deed investments then you have to really remember to stay focused and very deeply consider the properties that you want to invest in. We recommend that you do not try to invest in a property that you would not be interested in one day owning. We say that because there is always the chance that you could end up owning the property and it wouldn’t be fun to own something you don’t actually like. Just something to remember as you dive into the world of trust deed investing. Remember these tips and ideas we gave you and trust deed investing should be the best thing that you ever did for yourself. Good luck!

Everything A Beginner Needs to Know About Trust Deed Investing

As you know by now, Trust deed investing is a very simple way to make a little extra cash just by investing in projects you really believe in.

We think that really, there’s never been a better time to consider trust deed investing. Now is the time!

However, there are some things that people have to get straight before they start working with trust deed investing. First of all, you have to understand that a mortgage is much different from trust deed investing. There are many different steps and paper work as well as three principal beings in a trust deed investment that a mortgage does not; the borrower or the trustor, the lender or the beneficiary, and the trustee. The Trustee is the person who actually purchases the property and in the end, if the trustee is paid as promised, then they won’t have any claim to the property. Remember though that in a trust deed investment, if the borrower does in fact default then trustee takes back the mortgaged property.

Furthermore, if you are beginning to look into trust deed investment, then you need to look into properties that interest you. The chances of you owning a property you don’t like if a loan defaults is huge, so make sure you like it! Inspect all your properties yourself and be cautious when making your Trust Deed Investments San Fransico . It could make all the difference.

That being said, do be on the lookout for non-performing notes for sale. This kind of secured debt sounds ominous, but it could bring you lots of money because these non-performing notes for sale are sold at steep discounts. Keep these things in mind when you are making your Trust Deed Investments San Fransico . We assure you that you will be glad that you did.

How To Get Your Non-Performing Notes for Sale and Have the Best Trust Deed Investment

Secured debts are something you should consider when going into the world of trust deed investing. Have you thought about purchasing a non-performing notes for sale? No? Well, maybe it’s time you should.

You see, Non-performing notes for sale are a really great way for you to make a trust deed investment that is going to make a lot of profit. These non-performing notes for sale actually make a lot of money because they are sold at such a discount. Keep that in mind as you shop around for your trust deed investment.

Now, you may think to yourself that a secured debt such as non-performing notes for sale might seem like it could be risky, but that just isn’t so if you’re looking to make a profit. Give it a try, there’s no harm in yielding some big returns! It may seem crazy, but consider it for the profits. These non-performing notes for sale go for cheap and it could be amazing for your bank account so keep it in the back of your mind. The risk might very well be worth the reward.

Additionally, you really want to keep in mind that if the loan fails to fix the performance of the Non-performing notes for sale, then the non-performing notes for sale trustee will still be entitled to the property. Something like this can be a great alternative toa foreclosure auction, which can sometimes be a long and difficult transaction.

Keep all these things in mind as you talk to a trusted mortgage loan broker. You might see yourself making some great profits in the end! Rest assured that investing in trust deeds is one of the best way to jump in and make some money. Be happy you took that chance! Get into trust deed investing today.

What You Need to Know About Trust Deed Investing Right Now

Trust deed investing is a great way to boost your income and if you haven’t heard about it, it’s time that you did.

If you’re new to trust deed investing, you may want to consider looking into purchasing non-performing notes for sale. If the name scares you, don’t let it. These are a great way to make a profit without having to do much at all!

You see, non-performing notes for sale are usually sold at a very reduced rate. That means that ultimately, there’s a chance that you could make a huge profit on whatever you originally paid.

Non-performing notes for sale are also called ‘secured debts,’ but don’t let the name put you off. These are actually very successful ways to make money. Buying non-performing notes for sale at a loss can ensure that you get profit for days to come. That’s great new for you as a buyer!

Remember that even if the loan fails to fix the performance of the Non-performing notes for sale, the non-performing notes for sale are actually secured debts, which in the end really means that the owner of the note is the one still entitled to the property. This is a great alternative to a long and involved foreclosure auction.

So try on a trust deed investment for size. Go about getting yourself a mortgage loan broker and figure out what you need in order to start making profits on a piece of property in your area. If you keep all these things in mind while you go out in search for a piece of property, there’s a good chance you could come home a lot richer! Best of luck in your trust deed investments.