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

A deed of trust is a legal document that assigns a property to a third party (the trustee) as security for the repayment of a loan. It is most commonly used in real estate transactions, transferring ownership rights from the borrower to the trustee as a form of security for the loan. The trustee holds the property until the loan is paid in full. In a real estate dispute, the deed of trust serves as an important part of the dispute resolution process. If the borrower is unable to repay the loan, the lender has the right to foreclose and take back ownership of the property. The deed of trust also gives the lender the power to sell or transfer the property to a new owner if the debt is not paid. In Washington, the courts have the power to resolve real estate disputes through the deed of trust. In order to protect the rights of both the borrower and the lender, the court will assess the situation before making a decision. The court could order the sale of the property to a third party, order the borrower to pay off the loan, or modify the terms of the loan. In short, a deed of trust can be an important tool in resolving real estate disputes, affording both the borrower and lender protections. It provides the lender with security in case the loan is not repaid, while also giving the borrower a chance to negotiate with the court to try and find an acceptable solution.

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

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