Colorado Sample Letter for Cancellation of Subject Deed of Trust
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FAQ
The release form is submitted to the Public Trustee's Office in the county in which the property is located. The purpose of the release is to remove all (Full) or a portion (Partial) of the property from the lien created by the Deed of Trust.
In Colorado, real estate purchases in which the purchaser borrows money to pay for property are typically secured with a Deed of Trust. Rather than a mortgage in which the parties are the borrower and the lender, a Deed of Trust is a three-party agreement among a borrower, a lender, and the county Public Trustee.
In Colorado, most lenders prefer to use deeds of trust to secure their interest for a loan, and legal title to properties are held by the public trustee in the county where the secured property is located.
Howa trustee deed works A trust deed is used in place of a mortgage. A person (the lendee) buys a home and finances it through a bank (the lender). A third party?the trustee, usually an escrow company?legally holds title to the home for the lender as security against the loan.
To transfer real property into your Trust, a new deed reflecting the name of the Trust must be executed, notarized and recorded with the County Recorder in the County where the property is located. Care must be taken that the exact legal description in the existing deed appears on the new deed.
A promissory note is a promise to pay and includes things such as interest rates, default rates, late fees, penalties, etc. The Deed of Trust makes the promissory note a debt secured by a lien on the subject property. In Colorado a promissory note must include the loan amount, payment schedule and time frame.
The main difference between a deed and a deed of trust is that a deed is a transfer of ownership, while a deed of trust is a security interest. A deed of trust is used to secure a loan, while a deed is used to transfer ownership of a property.
