What is a deed of trust?

A deed of trust is a legal document used in property law in Virginia, whereby a borrower grants a lien on their property to their lender. This lien is used to secure a debt, such as a mortgage loan. The property is held by a third party, known as the trustee, until the loan is repaid. If the loan is not repaid, the trustee has the power to sell the property to satisfy the debt. A deed of trust generally involves three parties: the borrower, the lender, and the trustee. The deed of trust must be executed, meaning signed by all three parties, in order for it to be legally binding. The deed of trust usually contains details such as the amount of the loan, the interest rate, and the terms and conditions of repayment. Once the deed of trust is executed, the lender has legal rights over the property, which remain until the loan is repaid in full. The deed of trust can be a beneficial and cost-effective way for lenders to secure debts. It allows them to have easier access to the property in the event that the loan is not repaid, since all they have to do is contact the trustee to start the foreclosure process. Additionally, the lender can avoid taking the borrower to court if the loan is not repaid, as they can utilize the deed of trust to collect their money.

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What is a deed of trust?

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