How Do You Assign An Interest In A Deed Of Trust Without A Formal Assignment?
A deed of trust is a relatively rare instrument that can be used to secure a loan between a lender and the buyer of property. Part or all of the property, called the interest, is titled in the name of a neutral third party trustee. The trustee can sell the property on behalf of the lender without a formal judicial foreclosure if the borrower defaults on their debt payments. Many deeds of trust carry “due on transfer” clauses that entitle the lender to the entire remaining principle of the loan in a lump sum if the property is sold or transferred. Thus, it can be advantageous to transfer property subject to a deed of trust without a formal assignment. Create a revocable living grantor trust. A trust is a fictitious entity, like a corporation, that owns assets provided by a grantor (or settlor), which are managed by a trustee on behalf of a beneficiary. A grantor trust is treated by the IRS as the property of the grantor, and all income earned by the trust flows through to their individu
