Whats the difference between a trust deed and a mortgage?
The difference between the trust deed instrument and the mortgage instrument is that while both are used by lenders to provide for the foreclosure on the real property that is the collateral behind a mortgage loan. With a trust deed the need to go through the court system is accelerated by bypassing it all together. With a trust deed instead of having to go get a judges order to grant title to a lender, in event that the borrower cannot make payments, the trustee who is appointed in a trust deed has the authority to convey title from the borrower to the lender without the need of going through the courts judicial system.
Related Questions
- How do we handle the situation where the Seller is doing an Exchange and they will be carrying back a note and deed of trust or mortgage?
- What is the difference between a Judicial Foreclosure / Deed of Trust Sale and a Deed in Lieu of Foreclosure?
- What is the difference between a mortgage and a deed of trust?
