What is an assignment of a deed of trust?

An assignment of a deed of trust is a legal document used in real estate law in the state of Washington that assigns the interest of a borrower under a deed of trust to another party. A deed of trust is an agreement between the borrower and a lender that outlines the rights and obligations of each party with regard to a borrower’s real estate. The borrower pledges the property as security for a loan. If the borrower fails to make appropriate payments on the loan, the lender can obtain legal recourse against the property. In a deed of trust, the borrower is referred to as the "trustor," the lender is referred to as the "beneficiary," and a third party, known as the "trustee," is appointed to hold the title to the property. When an assignment of a deed of trust is given, the beneficiary of the deed of trust assigns their rights in the deed of trust to another party, usually a third-party lender. The assignment of a deed of trust replaces the former beneficiary with a new beneficiary, and thus transfers all the rights and obligations of the trustee, trustor, and beneficiary to the new beneficiary. The purpose of the assignment is to allow a lender to collect the loan balance from the new beneficiary if the borrower fails to make payments.

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What is an assignment of a deed of trust?

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