Selling a Deed of Trust
Depending on which state you’re in, you might have a deed of trust instead of a traditional mortgage for your property purchase. Currently, there are about 15 states that use either a mortgage or a deed of trust, and California is one of them. Selling a deed of trust is something Creative Recovery can help with.
What is a Deed of Trust?
A Deed of Trust (also known as a trust deed) is a legally binding agreement between a borrower and a lender that gives third-party ownership of the property as collateral. The third-party is known as the “Trustee.”
The Trustee is typically a company or financial institution that doesn’t hold interest in the property, but it can also be a person or investor.
A deed of trust is considered a promissory note, which states that the borrower will pay for what is owed on the property.
What is the Difference Between a Deed of Trust and Mortgage?
A traditional mortgage involves two parties – the borrower and the lender. If a property with a mortgage is in default, there is a judicial process that must take place first before it can be foreclosed.
A deed of trust involves a third party who holds the title until the loan is satisfied between the borrower and lender. Unlike a typical mortgage agreement, a deed of trust foreclosure can skip the court process altogether.
Selling a Deed of Trust for Cash
If you hold a secured or non-secured trust deed and receive a stream of recurring payments, you can turn your deed into cash.
Common reasons for wanting to sell a Deed of Trust:
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- Needing money to pay off debts
- Wanting cash for future investments
- Freedom from having to collect payments
- Beneficiaries or heirs can’t come to an agreement
- Property has lost its value
- Mortgage or taxes are delinquent
- Dealing with a “bad” borrower
It doesn’t matter what the reasons are for wanting to sell your deed of trust, but selling it to a company like Creative Recovery Concepts for cash means that you no longer have to wait for payments to come in from the Borrower.
What if the Borrower isn’t Making Payments?
If you’re stuck in a situation where your borrower isn’t making the monthly payments or paying back the loan as outlined in the initial agreement, this is known as a non-performing note.
The good news is that Creative Recovery Concepts specializes in handling all types of note collections, even non-performing or “problem” notes.
You can contact us to discuss your particular situation to see how we can help you.
Deeds of Trust on Assignment
We also accept deeds of trust on assignment and can collect payments on them as well. An assignment of a deed of trust does not affect the borrower and they remain obligated to continue their payments.
Are You Interested in selling your Deed of Trust?
We buy real estate notes, mortgage notes, and trust deed notes (secured or unsecured.)
If you are interested in selling your deed of trust, mortgage note, real estate note, or trust deed, contact us today to discuss your options and find out how much cash you can get for your deed of trust today.