Promissory Note Legal Help

Secure loan agreements with clear legal documentation.

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Can anyone do a deed of trust?
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Promissory Notes and Deeds of Trust Services

A promissory note and deed of trust have one simple function to secure the repayment of a loan by placing a lien on the property as collateral. If the loan is not paid, then the lender has the right to sell the property. Both documents are used to make sure the seller secures the repayment of the loan. A Promissory note with a deed of trust is like an I owe you (IOU). This is a contract that promises to repay the loan. The deed of trust is the document that secures the loan with the property in case of default. Price: $450 (Setup an appointment here)

Protecting Your Financing Agreements

How is a Deed of Trust Different From a Mortgage?

A deed of trust is different from a mortgage due to the number of parties involved and how the lender can resolve an unpaid loan. If the borrower can’t pay a mortgage, then the lender forecloses. If a loan isn’t repaid with a deed of trust, then it is the responsibility of the trustee. A trustee is a third party, usually an escrow company that pays.

If the borrower can’t pay the mortgage, then it goes through a traditional court process. This is known as a judicial foreclosure. This requires the lender to file a lawsuit. If a deed of trust is the instrument used, then the court process is bypassed. This is known as a non-judicial foreclosure. It is usually a lot faster and less costly. For typical investors and homeowners, this is the better route to choose in selling property. The terms of the procedures are usually laid out in the deed of trust which are subject to state law.

More Details About a Promissory Note & Deed of Trust

The promissory note will give; the terms of the loan, loan amount, interest rate, payment schedule, etc. Usually the deed of trust attests the home is worth more than the amount loaned to protect from default. This is usually a given. You cannot get a deed of trust and promissory note for more than the home is worth just in case you do go into default. The home is the collateral. When using this type of instrument, confirm the loan amount and price of the home are beneficial to the buyer and the seller even in case of default.

When you are closing with a promissory note and deed of trust, it is imperative that a clear title search is completed to ensure the taxes are current. It’s important there are no other outstanding loans or debts against the home.

FAQ

What Can You Negotiate on a Promissory Note for a Home?

What Are the Requirements to Do a Promissory Note and Deed of Trust in Texas?

Is a Deed of Trust the Same as a Promissory Note?

What is the Difference Between a Warranty Deed and a Deed of Trust?

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Maas Law Firm, Texas Real Estate Attorney

We are a San Antonio Real Estate Law firm that offers fixed fee rates for a variety of legal transaction services, including Owner Finance & Wraparound Closings, Foreclosures, Deeds & Releases, Real Estate Contracts, Title Issues & Judgments, Wills & Estates, Probate & Administration, & LLC Formations. If you need help assessing your case give our office a call.

Victor has been doing real estate transactions as a lawyer since 2002 & as an investor himself since 2003. There are a lot of nuances with real estate & we hope that if you have any questions to contact us during regular business hours. Along with being a Real Estate Attorney, Victor is also a Real Estate Broker, making his expertise long standing & efficient.

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