Trust Deed Buyers

AITD (ALL INCLUSIVE TRUST DEED)



Filed under: All Inclusive Trust Deeds,Deed Of Trust,Deed Of Trust Forms,Trust Deed Buyers by Frank Mori |

AITD is a well known acronym. It means All Inclusive Trust Deed. When you work 12 hours a day with this kind of product you start using acronyms to make your work better. If you want to expand your knowledge visit our page about All Inclusive Trust Deed.

An AITD is also known as a wrap-around loan. This means that a preexisting loan is absorbed into a fresh loan that is made by a property’s seller. AITD is a “Subject To” transaction in which the seller also carries back from the buyer a promissory note as part of the purchase price secured by a junior trust deed on the property.

Generally, the buyer makes payments to the seller (or collection account) in an amount sufficient to pay any senior loan and the seller. The seller (or the collection account) is then required to make payments on any senior loan with the balance going to the seller on the junior loan.

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  1. [...] In the event the first trust deed and note contains a “Due On Sale Clause,” the parties will want to seek legal and tax counsel as to the ramifications of doing an AITD.” [...]

    Pingback by All Inclusive Trust Deed — January 21, 2010 @ 11:19 am

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What is a deed of Trust ?

A deed of trust, also known as a trust deed, is a unique form of loan recorded within public records as a deed that has a lien on the property. Trust deeds are used by borrowers instead of conventional mortgages. This is usually done in order to obtain greater flexibility on the loan that would be available under the rules and regulations in standard lending institutions such as banks.

With a deed of trust, there are three main parties involved. These parties include the trustor - which is the person who is borrowing the money - the beneficiary - also known as the lender - as well as a neutral third party. This third party is the trustee, who temporarily holds part of the property title until the loan is paid in full.