How is the mortgage document different from a deed of trust?
A mortgage document is often confused with the mortgage loan.� But the mortgage is actually a legal document that you, the home buyer, give to the lender proving legal claim of the property.� This is done at the loan closing.� The mortgage pledges the property as security for payment of the loan. A deed of trust is sometimes used instead of a mortgage.� Both a mortgage lien and a deed of trust are recorded in public records. � A mortgage is a document held by the lender until the debt is paid.� With a deed of trust, the borrower transfers legal title, temporarily, to the trustee (not the lender) who holds the property in trust as security until the lien is satisfied.� The trustee is often an attorney or title agent.
If you pay according to your agreement, both the mortgage and the deed of trust are cancelled.� If you default on the mortgage agreement, the lender may foreclose on the property through a court proceeding and sell it to satisfy the debt.� ������� However, with a deed of trust, the trustee has the power to foreclose, at the request of the lender, without a formal court proceeding.��
MortgageTools
Mortgage Calculators Better understand your
loan options using
mortgage calculators! Click Here
Mortgage Glossary Become more familiar with
all the terms used in the
Loan Process Click Here