Hello again, Friends!

If you have ever been to a real estate closing, which I imagine you have and at the very least you know something about it, you know the amount of paperwork involved from a lender to a borrower has become mind boggling. Some lender closing packages have as many as 100 pages of documents. Most closings can take as much as an hour to sign and that does not include taking time to read the small print. It takes a very nimble and informed notary agent and/or attorney to know how to properly navigate and explain each document to a borrower.

So, what is a deed of trust? It is a document of public record and if you have not read it (I strongly recommend you do), it is the security for your loan.

There are 3 parties represented in a Deed of Trust

~ Trustee - an entity /3rd party that holds legal title

~ Trustor - you, the borrower

~ Beneficiary - the lender

A Deed of Trust includes the following:

~ Loan amount

~ Full legal description of the property being used as security or collateral for the loan

~ Terms of the note - how much you owe and for how long

~ Any late fees

~ Addendum's for Alienation clauses and prepayment penalties

~ Legal procedures (default, delinquency and foreclosure remedies)

So what is the difference?

A Promissory Note or simply "The Note" and Deed of Trust                                          

~ A deed of trust is security of the debt

~ The promissory note is the promise to pay

.....and includes the following details:

- legal name(s) and alias(s) of the borrowers

-Principal of the loan

-Interest rate

-Payment

-Prepayment, if any

-Address of property

With all the scrutiny of who is blaming who in our current mortgage crisis and the above representing such an important part of the process, I am left wondering how the simple task of information or explanation could have stemmed some of the issues homeowners are facing today.

Thanks for stopping by

To your success

Until next time my friends,

LEADING EDGE TITLE SOLUTIONS

Matching experience with technology to give

you the edge to be a mortgage industry leader

Bo Hussung

Vice President of Sales

phone ~ 615-438-7300 fax ~ 678-261-1594

email me ~ bhussung@cogentca.com

web ~ www.cogentca.com