Have you thought about purchasing property with a deed of trust still on it? It’s common practice in states like California, Texas, Arizona, and Colorado. Essentially, someone else holds the ownership while you continue to pay it off – but can you sell a house with a deed of trust still in play?
There’s understandable confusion here. Is selling property that technically belongs to a third party possible?
Want to know, “How can I sell my house fast in Detroit?” Keep reading. Wise Property Buyers’ has years of experience purchasing homes that other companies won’t, including some with deeds of trust.
What Is the Difference Between a Deed of Trust and a Mortgage?
A property’s deed of trust, like a mortgage, represents a legally binding document of ownership. A buyer abides by these terms once their lender gives them money. However, unlike a mortgage sale, a trust deed belongs not to the lender but to a neutral third party, called a trustee – usually a bank, title company, or escrow company.
This trustee manages the property title and forecloses if the borrower (homeowner) defaults on their payments. However, due to the third party’s impartiality, any foreclosure process may skip the judicial court case a mortgage foreclosure would demand. Even so, can you sell your house with a deed of trust?
Let’s look at another difference between a mortgage and a deed of trust: the borrower is the legal property owner, even with an unpaid mortgage amount outstanding. As a homeowner with a deed of trust, on the other hand, you settle for an equitable property title until you’ve made all your payments to the legal title-holding trustee. Your property’s trustee holds your house as collateral for this “loan” and sells it if they need to get their money back.
When You’re Selling With Deed of Trust
You know what to expect when purchasing a home with a trust deed, but what about selling one? Can you sell your house with a deed of trust? What does the home sale process entail?
The caveat here is important: your lender has a title property lien and must agree to the sale.
Have you received the green light from your trustee? Go ahead and put your house on the market! You’ll go through the typical selling process here, the same as you would if your house had a regular mortgage.
The money from this sale should cover the remaining loan amount, of course. At this point, your property’s trustee will relinquish the title to the new buyer.
We’ll Buy Your Home in Any Condition!
Can you sell a house with a deed of trust to anyone who wants to buy it? Yes, but only with the permission of your trustee!
Do you want to get it on the market as soon as possible? No time to make repairs? Even if you simply want to know more about selling a house before paying it off, contact Wise Property Buyers at (313) 513-8824! We purchase any home, in any condition, even those real estate agents don’t want to touch!