Re: Has any one else dealt with this? - Posted by Joe Kaiser
Posted by Joe Kaiser on August 23, 2003 at 23:24:47:
A mortgage is a two party agreement between a borrower and
A deed of trust is a three party agreement between a borrower,
lender, and just for kicks, a trustee.
Although there’s not actually called “borrower” or “lender” in
In practice, the actual difference is minimal. Because the deed of
trust contains a power of sale and a built in “neutral” 3rd party, it
can be foreclosed nonjudicially (without a lawsuit).
Whereas, a mortgage would typically require the filing of a
foreclosure lawsuit should the lender decide to foreclose.
How this affects your sub2 deal? It doesn’t.
The trustee only comes into play when the loan needs to be
foreclosed or gets paid off. Most of the trustees named in deeds
of trusts are title companies who don’t even know they’re
Since the lender can swap out trustees anytime, they typically go
with the title company and make a chance when and if needed.
Short story . . . it just doesn’t matter.