Deed of Trust
A Deed of Trust is a written agreement that creates a lien on real estate property. There are two primary ways most people acquire real estate properties— an all cash deal or through financing. Unless you are able to purchase a property upfront, you’ll probably end up financing that property through traditional banking and/or private lenders. When you work with lenders, you will be presented with several closing documents that need to be signed in order to secure the loan. Amongst the many closing documents, important documents like the promissory note and either a mortgage or deed of trust will be present. The promissory note is a document that one would sign promising to payback the loan amount plus any interest accrued. A mortgage and a deed of trust, as stated earlier, is an agreement that creates a lien on the property. In the event that the borrower is unable to repay the loan, the lender has a right to seize the property, especially when financing the property through the traditional methods. A mortgage and a deed of trust share similarities; however, they are different. For now, the Deed of Trust will be the focus.
In a Deed of Trust, the borrower receives equitable title to the property (the borrower has a right to own the property when the loan is paid in full). In exchange for securing the loan, the borrower gives legal title (ownership) to a trustee, who holds the title for the lender. This arrangement serves as collateral on the promissory note. Please be advised, a deed of trust is permissible in some states, not all. If you need any clarifications of the deed of trust as it pertains to your state, please consult a lawyer or attorney.
Common Contents of Deed of Trust
A Deed of Trust contains the responsibilities and obligations of the lender to the borrower, as well as the responsibilities and obligations of the borrower to the lender. The deed of trust usually includes the following information:
The parties involved
The Loan Amount and Maturity Date
The Escrow Account details
The Property’s Legal Description
Power of Sale Clause
Late Fees & Prepayment Penalties and Clauses
Information about the Foreclosure process, including Notice of Default.
Information regarding a future mortgage, if there’s to be one between the mortgagor and mortgagee.
The borrower is required to make payments as outlined in the promissory note. The lender is required to accept and accurately report the borrower’s payments and outstanding balances. The trustee must take an impartial stance in the agreement. If the borrower fails to make their loan payments, the trustee is required to recover as much of the outstanding balance as possible.
Notary Glow and Your Deed of Trust
You’re probably wondering… “How can Notary Glow help me with my Deed of Trust?” Well… there is a notarial block attached to your Deed of Trust… and we are a very convenient Notary Company. Notary Glow has been sent out across the New York state to facilitate the closing process for many residential and commercial loans between borrowers and lenders. Through repetition and studying, we’ve managed to become very familiar with the loan closing process and paperwork. We understand that every closing process is unique and the paperwork varies depending on those unique circumstances.
There are plenty of Notary Publics located in the state of New York. However, getting a Notary Public when you need one can still be a hassle. Notary Glow makes finding a Notary Public very simple. We offer notary services two ways: remote (online) and mobile (travel to you). Our Remote Online Notary services allows you to upload your Deed of Trust through our partnered platform, where you can have your document signed and notarized in as little as 15 minutes. Our online notary process is very safe, secure, legal and nationally accepted. Our Mobile Notary service is a white glove experience and it is available by appointment only. As long as your desired location has a valid address, we will travel to your location and notarize your documents there. Notary Glow strives for convenience, simplicity and excellence; we’re only a couple of clicks away.
