Who can be a trustee in a deed of trust
In a deed of trust, it is the trustee--not the lender--who files the Notice of Default and handles the foreclosure process from beginning to end. The trustee also handles the sale of the property, and the trustee is obligated to draw as much revenue as possible at sale to mitigate the lender’s losses. Requirements for Trustee. The trustee named in a Texas deed of trust can be any individual person who has the legal capacity to hold and transfer property. Under Texas law, if the named trustee is a corporation, the corporation must be authorized to act as a trustee in Texas. In the lending industry, a deed of trust, or trust deed, is a type of secured loan used to purchase real property. A trust deed is almost identical to a mortgage loan in function and in structure, except that the former relies on an intermediary third-party to act a trustee, where the latter does not. Foreclosure. In the event the borrower defaults on her loan payments, the trustee’s final responsibility is to handle the foreclosure proceedings. In a deed of trust, it is the trustee--not the lender--who files the Notice of Default and handles the foreclosure process from beginning to end. The trustee’s primary function is to hold and maintain a property title for the borrower and the lender for the duration of the loan. Therefore, it is the trustee who retains factual ownership and control of the property in question, not the lender. The terms of the deed provide that the transfer of legal title to the trustee will be void on the timely payment of the debt. If the borrower defaults in the payment of the debt, the trustee is empowered by the deed to sell the property and pay the lender the proceeds to satisfy the debt. In Texas, a deed of trust is most commonly used to secure a loan for the purchase of a home or other real property until that loan is repaid and the trust is voided, similar to how mortgages are used in other states. It can also be used, however, as a more permanent part of a comprehensive estate plan. Trustee's Function. While the note itself is your promise to pay, the trust deed identifies the terms. Trust deeds are not perfectly uniform, and vary slightly by state and lender. In general, they give a legal description of the property, and define the loan amount and the parties involved. deed of trust. n. a document which pledges real property to secure a loan, used instead of a mortgage in Alaska, Arizona, California, Colorado, Georgia, Idaho, Illinois, Mississippi, Missouri, Montana, North Carolina, Texas, Virginia, and West Virginia. In Texas, a deed of trust is most commonly used to secure a loan for the purchase of a home or other real property until that loan is repaid and the trust is voided, similar to how mortgages are used in other states.
The person who has the legal capacity to hold and transfer property.