What is a trust deed?
A trust deed is a legal document that secures a debt obligation, usually in the form of a promissory note, while transferring legal title of a property to a trustee for the purpose of protecting the interest of a lender. In the state of Michigan, trust deeds are a form of real estate security which is used to secure the repayment of a loan. This is an important form of security because it provides the lender with a way to collect on the loan if the borrower defaults on their payments. In addition, a trust deed also gives the lender the authority to foreclose on the property if the borrower fails to make payments on the loan. The trustee serves as an intermediary between the borrower and the lender and is responsible for making sure that the loan is paid back in full. In cases where the loan is not paid back in full, the trustee will be responsible for collecting all of the funds necessary to pay off the loan. Trust deeds are a commonly used form of security in the state of Michigan and can provide lenders with added protection and assurance that their investment is secure. It is important for borrowers to remember that a trust deed is a legally binding document and that if they fail to make payments on their loan, the lender has the right to foreclose on the property.
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