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Although a Deed of Trust is similar to a Mortgage, which is used in other states, it is not a Mortgage. Good to know: Texas does not use mortgages. Instead, Texas uses Deeds of Trust. The document is referred to as a Deed of Trust because there is a Trustee named for the property.
Putting your home in a Trust in Florida can yield a variety of benefits, from minimizing estate taxes to avoiding probate. Trusts can seem confusing or reserved for the super-rich, but they're accessible for all types of families and easier to set up than imagined.
This document may be called the Security Instrument, Deed of Trust, or Mortgage. When you sign this document, you are giving the lender the right to take your property by foreclosure if you fail to pay your mortgage ing to the terms you've agreed to.
A trust deed is a legal agreement between you and your creditors to pay back part of what you owe over a set period. This is usually four years, but may vary.
If real property is utilized to secure a loan, it is usually achieved by executing a mortgage or, in California, a Deed of Trust. A mortgage is a document that allows the creditor, who is unpaid, to proceed to court to force the sale of the property to pay off the debt.
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 deed of trust has a borrower, lender and a ?trustee.? The trustee is a neutral third party that holds the title to a property until the loan is completely paid off by the borrower. In most cases, the trustee is an escrow If you don't repay your loan, the escrow company's attorney must begin the foreclosure process.
Why is a Declaration of Trust important? It is important because it protects your investment in a property if things do not go as planned. It also records the position regarding how the property is owned and avoids any assumptions or confusion as to the shares and general ownership of the property.