All About Deeds of Trust and Trust Deed Investing
All About Deeds of Trust You’ve just made the decision to purchase a home! First things first. Find the perfect property for you, make an offer that will be accepted by the seller, and finally secure financing. When it comes to financing buyers will use either a mortgage or a deed of trust . These are the names of the document’s buyers will use to secure financing. Both works similarly, but not the same. Certain states require buyers to use only one and other states, such as Arizona allow either. The biggest distinction between the two is the number of parties involved. A deed of trust has three parties and a mortgage has only two. The three parties in a deed of trust are the borrower, the lender, and the trustee. The borrower is also referred to as the trustor and is the person purchasing the property and in need of a loan. The lender is either a legal entity or an individual who provides the loan. The trustee is a neutral third-party who holds the deed to the house and is ultimatel