This form is a deed of trust modification. It is to be entered into by a borrower, co-grantor, and the lender. The agreement modifies the mortgage or deed of trust to secure a debt described within the agreement. Other provisions include: renewal and extension of the lien, co-grantor liability, and note payment terms.
Deed Of Trust With Future Advance Clause In Texas
State:
Multi-State
Control #:
US-00183
Format:
Word;
Rich Text
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The granting clause grants the property with its related rights and appurtenances, beginning with “grants, sells, and conveys.” The habendum clause defines the extent of property ownership conveyed to the grantee, beginning with “to have and to hold.” The warranty clause describes the warranties of title made by the ...
Power of Sale Clause A power of sale provision is a significant element of a deed of trust, as it states the conditions when a trustee can sell the property on behalf of the beneficiary. Typically, this predicts when you will be delinquent on your mortgage.
A deed of trust can benefit the lender because it allows for a faster and simpler way to foreclose on a home — typically months or even years faster.
The parties agree and acknowledge that the Secured Party, although under no obligation, may advance the Debtor additional funds from time to time. The future advances shall become secured pursuant to the terms and conditions as contained herein. Future Advance.
(a) "Future advance" means an indebtedness or other obligation that is secured by a mortgage and arises or is incurred after the mortgage has been recorded, whether or not the future advance was obligatory or optional on the part of the mortgagee.
Granting Clause (Words of Conveyance) This clause clearly indicates the grantor's intention to transfer ownership to the grantee. Phrases such as “conveys,” “grants,” or “transfers” are commonly used to demonstrate this intention.
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Deed of Trust (with future Advance Clause). Up of a document Description automatically generated.Texas Real Estate Lending Guide. It allows the grantor to give up all ownership, with no responsibility toward the property or the grantee in the future. A Texas Deed of Trust creates a lien on property to secure a Promissory Note. These are two documents needed for real estate loans and seller financing. (3) The lender must enforce controls and conditions in the agreement. Here are a dozen ideas for current and future transactions. 1. Put all the collateral and debt in a single deed of trust or mortgage. Existing under the laws of the State of Texas. ("Beneficiary").