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A deed of trust involves three parties: a lender, a borrower, and a trustee. The lender gives the borrower money. In exchange, the borrower gives the lender one or more promissory notes. As security for the promissory notes, the borrower transfers a real property interest to a third-party trustee.
You may be able to avoid probate in New Hampshire by: Making a Revocable Living Trust. Titling property: Joint Tenancy.
A deed of trust can benefit the lender because it typically allows a faster foreclosure on a home. Most deeds of trust have a ?non-judicial foreclosure? clause, which means that the lender won't have to wait for the court system to review and approve the foreclosure process.
Like a mortgage, a trust deed makes a piece of real property security (collateral) for a loan. If the loan is not repaid on time, the lender can foreclose on and sell the property and use the proceeds to pay off the loan. Note: A trust deed is not used to transfer property to a living trust (use a Grant Deed for that).
If your circumstances change any you are no longer able to make your payments, your Trust Deed may fail and you will still be liable for your debts or even forced into bankruptcy.
New Hampshire trust law allows for decanting, a process by which a trustee creates a new trust and transfers assets from an old trust to the new trust, enabling some level of trust modification (and modernization) of the old trust.
What Is A Deed Of Trust? A deed of trust is an agreement between a home buyer and a lender at the closing of a property. The agreement states that the home buyer will repay the home loan and the mortgage lender will hold the property's legal title until the loan is paid in full.