BiggerPockets

Does anyone here loan Deeds of Trust?

Pros?

Cons?

Thoughts?

I'm asking if anyone here makes loans that are Deeds of Trust, in other words they are written up that way...as Deeds of Trust....recorded at the county as such.

In my mind when you are loaning private money in small amounts....the only way you can be protected from being in the second position (and ultimately thrown out if foreclosure occurs) to the 1st mortgage holder is to write it up as a Deed of Trust. That also makes it so [i]you[/i] can move to foreclose if necessary.

I was wondering what that structure and documentation was. I was wondering if the terms and such are similar to other types of HML.

Did I not ask the question right?

Thanks Jon,

So if the Promissary note is not recorded does that make it " less" enforcable in some way?

Of course a Note is Notarized, but I like documentation, documentation, documentation.....

To me it's the only thing that helps you in court, plus when someone is borrowing from you, and they know you are documenting the heck out of everything, doesn't that tell them that certainly you will follow through with foreclosure if necessary, and that its' not just an empty " threat."

Yes, thanks Dan.

Sorry about my wrong wording....

I'm trying to find the do-it-yourself step by step procedure of writing these things up, and the step by step procedure of when to notarize, when to record...etc., etc.

Ok, thanks Dan. Will try to do that.

Thanks Jon,

I am going to try to talk to some professionals about this. I've been studying some documents for the past several hours as Dan suggested, and even though they are very redundant as far as the wording...it is not clear to me what each one is representing (only a handful do I understand), and why it was filed. So I need to get that clear in my mind.

Thanks again to you both for the help.