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The grant deed is used when a person who is on the current deed transfers ownership or adds a new owner. The grantor (donor or seller) promises that all rights to the property are being transferredthere are no hidden owners or easements.
The Trustee in a Deed of Trust is the party who holds legal title to the property during the life of the loan. Trustees will most often have one of two jobs. If the property is sold before the loan is paid off, the Trustee will use the proceeds from the sale to pay the lender any outstanding portion of the loan.
Start Deed of Trust StateMortgage allowedDeed of trust allowedCaliforniaYColoradoYConnecticutYDelawareY47 more rows
A deed of trust is an agreement between a home buyer and a lender at the closing of a property. It states that the home buyer will repay the loan and that the mortgage lender will hold the legal title to the property until the loan is fully paid.
Start Deed of Trust StateMortgage allowedDeed of trust allowedArizonaYYArkansasYYCaliforniaYColoradoY47 more rows
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If real property is utilized to secure a loan, it is usually achieved by executing a mortgage or, in California, a Deed of Trust. A mortgage is a document that allows the creditor, who is unpaid, to proceed to court to force the sale of the property to pay off the debt.
A grant deed is a transaction between two people or entities without securing the property as collateral. A deed of trust is used by mortgage companies when a homeowner takes out a loan against the property.
Foreclosure. Foreclosure is simpler with a deed of trust. When a mortgage is involved, the lender needs to file a lawsuit to start foreclosure proceedings. With a deed of trust, the trustee can put the home up for sale as soon as the lender provides proof that the borrower has defaulted.
California mainly uses two types of deeds: the grant deed and the quitclaim deed. Most other deeds you will see, such as the common interspousal transfer deed, are versions of grant or quitclaim deeds customized for specific circumstances.
In Alabama, Arizona, Arkansas, Illinois, Kentucky, Maryland, Michigan, Montana and South Dakota, the lender has the choice of either a mortgage or deed of trust. In any other state, you must have a mortgage.

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