What is a deed of trust and how does it affect a real estate dispute?

A deed of trust is a legal document that is used in the state of Virginia when transferring ownership of real estate. It is similar to a mortgage document, which is used to secure a loan for a person buying a property. In a deed of trust, the title to the property is held by a third party, called the trustee, until the loan is repaid. The borrower is known as the trustor. When it comes to real estate disputes, a deed of trust can be used in several ways. For example, if the trustor fails to make payments on the loan, the trustee can foreclose on the property. This allows them to take ownership of the property and re-sell it in order to recoup the money owed. This process is often used when the borrower cannot be located or is unwilling to make the payments. Another way a deed of trust can affect a real estate dispute is by allowing for a third party to intervene in the dispute. This is often done if the trustor and lender cannot come to an agreement on their own. The trustee can then act as a mediator between the two parties and negotiate a possible solution. This is often done with the goal of preventing a lengthy court case from occurring. In conclusion, a deed of trust is an important document used in real estate disputes in Virginia. It can be used to help secure a loan for the trustor, or to help settle a dispute between the trustor and lender. This document allows for a third party to become involved in the dispute, which can often be beneficial in preventing a court case from taking place.

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What is a deed of trust and how does it affect a real estate dispute?

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