What is a Deed of Trust?

Most borrowers just sign their loan documents without reading them. They know if they don't sign, they don't get the loan. And besides, the paperwork that's involved with a loan is simply enormous.

But every once in a blue moon I end up working with buyers who want to read everything they sign, like everybody really should do. Nine times out of ten, questions arise about the deed of trust. Probably the number one question I hear is: "What is a trustee?" Followed by, "And what is a trustee doing on my deed of trust?"

Good questions. Borrowers don't realize that the trustee possesses power of sale, too. But wait, don't you own the home? How can a trustee sell it? To understand the provisions behind a power of sale and how a trustee becomes a third party to a trust deed . . . read more about a deed of trust.

More Articles by Elizabeth Weintraub, click below:

• About Title Insurance Policies
  
• Property Deeds That Transfer Title
  
• Tenants in Common vs. Joint Tenants

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Technorati tag: deed of trust

_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}