What is a Deed of trust? The Deed of Trust is the document evidencing the security in the property. It is the instrument used by the lender to foreclose on the property if its terms are not met.
The most obvious term is that the mortgage payments must be paid on time, but there are other terms in the Deed of Trust you may not be aware of:
● For a primary residence, the borrower shall occupy the residence within 60 days of the execution of the Deed, and shall continue to occupy the property as the primary residence for at least one year after the date of occupancy.
● The borrower shall maintain the property in order to prevent it from deteriorating or decreasing in value due to its condition. The lender may make reasonable entry upon and inspection of the property. If it has reasonable cause, the lender may inspect the interior of the improvements on the property. The lender shall give the borrower notice prior to inspection specifying such reasonable cause.
● The Note or a partial interest in the Note can be sold one or more times without prior notice to the borrower.
● Borrower shall not cause or permit the presence, use, disposal, storage, or release of hazardous substances on or in the property. You will receive a copy of the Deed of Trust at closing. You will want to keep this in a safe place with the Note.
If you have any questions on the Deed of Trust, contact us!