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Private mortgages vs. Trust deeds: Whats the difference?

April 26, 2017Deeds difference mortgages private Trust vs

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Private mortgages vs. Trust deeds: Whats the difference?

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Ultimately they accomplish the same task; that is securing your principal investment. Every loan is secured by some document (instrument) filed with the local courthouse. This document allows you to take the property if the borrower doesn’t pay back the loan. Some states use “trust deeds” which are deeds placed into a trust/escrow account with a local title company. Other states use the traditional mortgage instrument. Trust deeds are far more popular on the west coast than east coast. For further details on the differences, please feel free to call our offices or contact your attorney.