What Secures A Trust Deed Investment ?
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When making a trust deed investment, the deed of trust recorded against the borrower’s property title is what secures the lenders investment. When making an investment in a deed of trust, the trustor (borrower) makes the property transfer, in trust, to the trustee (independent third party). The trustee then holds the conditional title on the behalf of the beneficiary (investor/lender/note holder), and then either of the following takes place:
- The trust deed will be returned to the borrower once they satisfy all of the terms and conditions that were outlined in the promissory note.
- The property will be put up for sale should the borrower default – also known as foreclosure. Foreclosure is the process that is taken by the investor in order to sell the property to a bidder from a third party, or to obtain title to the property. Usually the foreclosure sale satisfies the debt that is owed to the investor.
Related posts:
- Trust Deeds Basics
- Introduction To Deed Of Trust Investments
- Coppercrest Funding & Trust Deed Investing
- Deed Of Trusts | Coppercrest Funding
- Get Involved With Trust Deed Investing
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