How to Prepare a Deed of Trust (Real Estate Seller Financing Tutorial)
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- čas přidán 8. 09. 2024
- Get started on your Deed of Trust with Rocket Lawyer at: retipster.com/...
See the full blog post at: retipster.com/...
When selling a property with owner financing, several different loan instruments can be used to close the real estate transaction. One such option is the Deed of Trust (also known as a Trust Deed in some states).
A Deed of Trust is a seller financing instrument that technically involves three parties:
- The Buyer (Borrower)
- The Seller (Lender)
- The Trustee
The Deed of Trust isn't recognized in all 50 states. Still, in the states where it is recognized, it will typically allow the Trustee (which is usually designated as a title company, attorney, or loan servicing company) to handle the entire foreclosure process out of court - which is known as non-judicial foreclosure. They can save a great deal of time and hassle by avoiding an even longer and more expensive court procedure.
To take advantage of the non-judicial foreclosure option (in the states where it is allowed), the Deed of Trust needs to include the proper "Power of Sale" language within the document.
Most people choose to hire an attorney or title company to help them prepare the Deed of Trust documentation, but if you choose to prepare the document yourself, you'll have to get the appropriate template for your state and complete it with all the pertinent details.
Luckily, services like RocketLawyer (linked above) have made this process easy. This video explains how it works.
Once you've completed your form, I recommend you take a few minutes and read through this document very carefully. Every state has differences in how this form is written, and as a general rule, it's important to understand exactly what you and the other party are agreeing to.
Note: I have had a great experience with Rocket Lawyer, but your experience may vary. The link above is an affiliate link, and at no additional cost, I will earn a commission if you decide to purchase this particular tool/service. I recommend this resource because it is helpful and useful, not because of the small commission I make if you decide to pay for it. Please do not spend your money on this unless you feel it will help you achieve your goals. #rocketlawyer #realestate #retipster #sellerfinancing #ownerfinancing #realestateinvesting
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The fact that you made this video 6 years ago and it only has 10k views is crazy. Great content !
Thanks! I'm glad you were able to find it.
Hi Seth, when trying to close in house with a person out of state, are you mailing documents back and forth for signatures or signing online? Also do you need any documents to be notarized and do you do that any special way?
Do you have a video on preparing deeds when seller is paying cash?
I sold an empty lot and carry a second deed of trust which was in default and delinquent, the Buyer ask me to subordinate the note to a new lender so he could pay the delinquent first deed of trust, I had no option, but sign otherwise the First deed of trust would have foreclose and I my second deed of trust would have been worthless. My question is can I sell this deed of trust for a discount? the good point is that when I subordinated the deed of trust I have the buyer sign a document personal guaranty of payment. In selling the deed of trust I believe that I have to disclose to the buyer of my not all the information that I have concerning the note (and rightfully so). I sure would appreciate your answer. Could you recommend a realtor or a note agency that could sell my note? I will be looking forward to your reply, thank you.
Your videos have really helped me a lot thank you. On a land contract what if the buyer doesn't make payments on the home improvements he had a contractor do and the contractor places a lean on the home?
Thanks! I'm glad they helped. Personally, I don't let borrowers do any improvements unless they either get my consent first OR they just pay off the land contract. Even if a contractor does place a lien on the property, while it is a "title clouding" instrument, it doesn't mean they get to take possession of the property, it just gets in the way if/when the borrower tries to sell the property in the future. I would imagine if you had to repossess it, you'd probably have to pay to get the lien removed (but at the same time, you'd also get your whole property back... so depending on the amount, it would most likely be worth the trouble). But again, that's why I just don't allow my borrowers to do it unless they get my permission first. That way, I can make sure they actually have a plan to get the improvements finished and paid for.
My question: Can you correct my deed to a DEED ABSOLUTE so that no codes, statutes or ordinances can be used or enforced against it due to absolute
ownership
Can you learn to prep the deed and get a "contractor position" with a title co?
How do I get my responsibilities of deed of trust
hey, I have a question what happens if the owner/lender declares bankruptcy am I? on the hook too? I'm buying by the way.
What if it’s a cash sale
If it's a cash sale, then a deed of trust wouldn't be necessary.