What is a deed of trust?

A deed of trust is a legal document in North Carolina that is used to secure a loan of money. It places the property purchased with the loan as collateral. This means if the borrower fails to make their payments on the loan, the lender can foreclose on the property to recoup any losses. The deed of trust is separate from the promissory note, which is a document that states the borrower’s promise to pay the lender back. This document also outlines the repayment terms and interest rate associated with the loan. When the deed of trust is signed by all parties, it is recorded with the county. This serves to put the public on notice of the lender’s interest in the property. This protects the lender in case the borrower defaults on the loan. The county can then foreclose on the property and sell it to recoup the lender’s losses. The lender also has the right to appoint a trustee to collect the loan payments from the borrower and to make sure the loan is paid back in full. This ensures that the borrower’s payments are paid directly to the lender. In North Carolina, the deed of trust is an important legal document for securing loans. It protects the lender’s interest in the property and ensures repayment of the loan on time.

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What is a deed of trust?

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