The title to the property is held by the trustee who is the third party to the trust deed. He does not represent the interest of the mortgage lender or the borrower. The trustee has the legal authority to transfer the property to the borrower after the loan is paid in full.
This is accomplished by recording in the county public records a document called a Deed of Release.
Deed of trust with assignment of rent gives the lender the right to automatically start collecting rent generated by property if the borrower defaults on the loan payments.
Another important element of the trust deed is that it names the trustee who takes legal title to the property.
A deed of trust with assignment of rents is a legal document that replaces the standard mortgage.
It is used in a wide variety of financial transactions, including, leases, property transfers and assignment of rents.When a loan is obtained to purchase real estate, a deed of trust is often used to give the lender rights in the real estate to secure repayment of the loan.An assignment of deed of trust is used by a lender when it sells its loan secured by a deed of trust.The second party is the lender, such as a bank or other financial institution, providing the funds to the borrower.To secure repayment of the loan, the borrower signs a deed of trust which transfers legal title to his real estate to a third party, called the trustee, who can be any individual or company that does not have any interest in the loan or real estate.Lenders have added protection in the event the borrower becomes delinquent on the loan payments.The assignment of rent, which is included in most mortgages and deed of trust with assignment of rent, gives the beneficiary the legal power and authority to collect rent, other income and profits that are generated by the property.Although not legally require to make the transfer effective, deeds are routinely recorded with the local government office responsible for recording real estate transactions.A recorded deed gives the public notice regarding property rights in a particular parcel of real estate, such as ownership, easements and liens.Loans that are secured by a deed of trust often include repayment terms that extend for several years or more.From a lender’s perspective, a loan secured by a deed of trust is a fairly safe investment when the value of the real estate is sufficient to repay the loan in the event of a borrower's default.