Trust Deeds

Deeds are part of all real estate transactions. In general, deeds are documents containing legal descriptions of a property that transfer the ownership of that property from one owner to another. There are several kinds of deeds and while many real estate deeds function in a similar way, there are some deeds that serve a different purpose.

Trust deeds, also known as deeds of trust, are not used to transfer property. Instead they act in a similar capacity to mortgages. Trust deeds transfer the title of the property to a "trustee" who holds on to the land as security for a loan. Once the loan is paid, the title is transferred to the borrower. The trustee does not own the property. The only power afforded the trustee is the ability to sell the property if the borrower defaults on the loan, in order to pay back the lender.

Trust deeds are instruments that secure the Promissory Note, and are funded by a conventional bank or a private source. They are excellent options for those borrowers who cannot or do not wish to go with traditional mortgage loans. Plus, the approval process for trust deeds is often easier.

One of the easiest ways to find the trust deeds you are looking for is through Hard Money Direct. In addition to being a lender ourselves, through Hard Money Direct, borrowers and their brokers can connect to a network of hard money lenders nationwide.