Are you tired of searching for ways out from your insurmountable debts? Are you exhausted from filing your loan applications? Unless you submit yourself for a Trust Deed, you will never be able to give yourself some time to rest from collection notices.
A Trust Deed or otherwise known as Deed of Trust is a credible option when you are in huge debt. This may sound new to you, but the concept which also means security of debt or loan has been around for some time now.
So what is really a deed of trust?
A deed of trust is a document that symbolizes the agreement between the borrower (debtor) and the lender (creditor) to assign a neutral third party also known as the trustee to protect the payment of the debts or the application of loans by the borrower.
This arrangement is usually done to cut through all the hassles often met by debtors from their unmanageable debts, and in the same manner give the creditors the assurance that they will be paid.
This arrangement is only made possible in the presence of three parties involved: the trustor or the borrower, the legal practitioner or the trustee, and the beneficiary or the creditors. The trustee can be a single entity, but most often, it represents a title company which has the right to exercise the Power of Sale.
Stated in the Deed of Trust is the transfer of assets by the borrower to the trustee for it to administer over them and to eventually take care of all the unsecured debts acquired by the borrower such as those coming from his credit cards, store cards, and other personal loans.
It may sound critical, but the Trustee is the most abused party among the three. The trustee not only consolidates all the debts and loans of the borrowers, but also administers the first party’s payment towards his creditors.
Given these responsibilities, the Trustee takes care of almost everything to protect the reputation and rights of the other two parties, the borrowers, and the creditors.
That is why, at the event of the agreement, a promissory note has to be procured which states the terms of the loans or the promise to pay the debts as signed by all parties. This note then, though not generally recorded, serves as the sign of the contract which should be kept by each of them until the term of the agreement is due.
This however should be carefully reviewed. Despite the legal nature of this process, it may sometimes have some loopholes. Misspellings, clerical errors in terms of the principal balance of the loan, interest rates, payment penalties and other relevant factors are only a few of the most common errors that have to be closely examined.
It would be better for both parties to at least read all the conditions before signing it. One has to remember that the Deed of Trust can finally help you out, but if mistakes are tolerated, that becomes another story.