Foote Title Group – Deed of Trust
The Deed of Trust is the document that the lender has you sign at your closing in order to secure the loan. The Deed of Trust, after signing is recorded in the land records right after your deed, that transfers the title to you.
So anyone doing a title search on your property looking up information in the land records, can see that you do have a loan and who it’s with and some of the basic terms.
The deed of trust also gives the lender not only the security of your home but it gives them the ability to foreclose on your home if you stop making the payments. Default could mean you’re not making the payments or you haven’t followed all the rules that are in that deed of trust then they have the right to foreclose on your property and take that property and resell it to try to recuperate their loan.
You have to remember the lenders loaning you are awful lot of money and they need to make sure that they can get that money back if you stop making those payments. So the deed of trust is actually putting your property in trust with the lender for as long as you owe them any money. Once you pay that loan off they will release that deed of trust from your property. Once you pay if off you will own your property outright.