Trust Your Knowledge, Know Your Trust Deed

When you sign a promissory note and record a trust deed, it becomes an acknowledgment of debt. A trust deed is used as the security device of preference to impose a lien on real estate. Your trust deed and notes are comprised in your loan doc's, they explain your interest rate, if your loan is fixed or adjustable, and the life and terms of your loan.

A trust deed contains elements and characterizations that identify all three parties in the trust deed. The parties in the trust deed are the owner, called the trustor (who voluntarily imposes the Trust Deed Lien on his property), the middleman, called the trustee, (who has power of sale over the property), and the lender or carry back seller, called the beneficiary (for whose benefit the trust deed lien encumbers the property). There are arrangements a trust deed lien carries. It carries the borrowers signature and notary acknowledgment, all three parties and legal description of property, and a promissory note and terms of the encumbrances.

The trustor, is usually the borrower of money or buyer of credit. An owner can hold a fractional co-ownership or leasehold interest. Other interests besides the fee and leasehold include life estates, beneficial interests in existing trust deeds, as well as equitable ownership rights under land sales contracts and purchase rights under options to buy. The trustee's role in a trust deed works likes this. The trustee's responsibilities are to auction the property at a private sale on notice from the lender of a default or election to sell. The trustee also reconveys title to the owner and releases the lender's lien on proper instructions from the beneficiary or the trustor. The beneficiary is the lien holder they hold a security interest in the property, called a lien. There are three ways to extinguish a trust deed relationship.

1. Foreclosure-by using a trustee's deed or sheriff deed.

2. Full Repayment-by reconveyancing.

3. Mutual Agreement-by a deed-in-lieu of foreclosure.

If one of the three applies to you, I suggest you follow up with your lender and work out a resolution.

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