A trust deed (also called a deed of trust) isn't like the other types of deeds; it's not used to transfer property. It's really just a version of a mortgage, commonly used in some states (California, for example). A trust deed transfers title to land to a "trustee," usually a trust or title company, which holds the land as security for a loan. When the loan is paid off, title is transferred back to the borrower (In California called a "reconveyance"). The trustee has no powers unless the borrower defaults on the loan; then the trustee can sell the property and pay the lender back from the proceeds, without first going to court.
Trust Deeds are usually recorded at a County Recorders office and are the evidence of money which is loaned on Real Estate secured by a deed that is recorded and a note or promise to pay back the money that was loaned. They can be great investments or real losers. An example is when you sell a property and carry back paper from the purchasers and they make payments to you. Our Broker, Mr. Fisher, has been working with Trust Deed Investors and Borrowers for over 20 years. If you have questions, need a private party loan secured by Real property, or would like to invest in Trust Deeds, give him a call today.
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