US Legal Forms
Change or Modification Agreement of Deed of Trust

Deed Of Trust With Promissory Note In Michigan

Category:

Real Estate - Mortgages and Deeds of Trust

State:

Multi-State

Control #:

US-00183

Format:

Instant download

Description

The Deed of Trust with Promissory Note in Michigan is a legal instrument that secures a loan by placing a lien on the borrower's property. This document outlines the terms of repayment, including the principal amount, interest rate, maturity date, and payment schedule. Key features include the renewal and extension of the lien, amendment of the security instrument, and co-grantor liability provisions. Users are required to fill in specific details such as the names of the borrower, lender, and any co-grantors, as well as property descriptions and payment amounts. Editing the form is straightforward, allowing for adjustments in terms and conditions while maintaining legal validity. This form is particularly useful for attorneys, partners, and legal assistants engaged in real estate transactions, as well as for paralegals assisting clients in loan agreements. The clarity of the document benefits users who may not have extensive legal experience, ensuring all parties understand their obligations and rights. It also serves as a protective measure for lenders, enhancing the security of their investment while providing borrowers with structured repayment terms.

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FAQ

Example: When used in a real estate transaction, the promissory note covers the promise to repay the amount owed, interest, and maturity date — while the deed of trust or mortgage outlines the other responsibilities of the parties involved more precisely.

Where to Get a Deed of Trust? To get a Deed of Trust, you must file the proper paperwork with the proper court as generally outlined above. These documents must be filed with the county clerk or recorder, and the lender typically sends them to the recording office after the property closing.

The property that secures a note is called collateral, which can be either real estate or personal property. A promissory note secured by collateral will need a second document. If the collateral is real property, there will be either a mortgage or a deed of trust.

An assignment in a deed of trust is a legal transfer of the lender's interest in the security instrument (the deed of trust) to a new party (the assignee). The assignor (current lender) transfers all rights, title, and interest in the deed of trust to the assignee, who becomes the new lender of record.

Promissory notes are legally binding contracts that can hold up in court if the terms of borrowing and repayment are signed and follow applicable laws.

Unlike a deed of trust or mortgage, the promissory note is typically not recorded in the county land records (except in a few states like Florida). Instead, the lender holds on to this document until the amount borrowed is repaid.