What is a deed of trust note?

A deed of trust note is a legal document in Washington State real estate law, used by a borrower to pledge property to a lender as collateral, usually in exchange for a loan. It is a three-party agreement between the lender, borrower, and trustee. The borrower (debtor) pledges their real property to the trustee, who holds the note for the benefit of the lender (creditor). The note contains the specifics of the loan, including the amount, interest rate, timeline of payments, and other terms. The lender holds the note until the debt is fully paid, at which point the note is marked as paid in full and the property is released from the lien of the deed of trust. The lender can take action to foreclose the property if the borrower defaults on the loan. In this case, the trustee will conduct a foreclosure sale and the property will be sold to the highest bidder. The proceeds from the sale will be used to pay off the remaining balance of the loan. The deed of trust note serves as a way for the lender to protect their investment in the property. It is an important document in Washington real estate and both parties should understand the legal implications of it before signing.

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What is a deed of trust note?

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