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Real Estate Lawyer in Scottsdale

What is a deed of trust?

Securing a loan can be critical for a person or family that is looking to purchase a home. Unfortunately, doing so can present many difficulties, which is why a legal professional should be involved in the matter from the beginning. Deeds of trust are legal documents that circumvent the typical method that is used to secure a loan through mortgage, instead using real property to complete the process.

Deeds of trust are utilized in less than 15 states throughout the country, and Arizona is one of them. Therefore, residents of the state who're considering a deed of trust for their loan should first consult with a Scottsdale real estate attorney about the logistics of doing so. Only when a legal professional is involved, can you feel confident in your ability to proceed with the process under the terms of the law.

In order to give potential lenders, buyers, trustors, and trustees a better idea of the processes that will be involved in the execution of a deed of trust in Arizona, the law office of Grant M. McKeehan breaks down the components included in these types of legal documents. Specifically, the elements which need to be identified in a deed of trust include:

  • The amount of the original loan
  • All parties involved in the process
  • A legal description of the property that will be used as security
  • The inception date of the loan, as well as the maturity date of the loan
  • The legal procedures involved in the process
  • Late fees
  • Acceleration clauses and alienation clauses

How It Works

A deed of trust is executed by deeding a property to a designated trustee (usually an escrow company or title). Once the deeding has been done, it will then be the responsibility of the trustee to hold the title in trust on behalf of the beneficiary (the original lender of the money that was needed for the loan).

According to the stipulations of a deed of trust, the trustor (the original title holder of the deed) can only request that the titled be returned by the trustee – through a process known as reconveyance – if and when the loan has been fully repaid. Deeds of trust assume that the legal title entrusted to a trustee will be void upon the timely payment of the debt.

Problems can arise when a loan becomes delinquent, at which point the beneficiary has the legal right to file a notice of default. If, even after filing a notice of default, the loan is still not brought current, the beneficiary can demand foreclosure on the property (a process that will be enacted by the trustee). In this way, the beneficiary can ensure that he / she still obtains the title, or is at least paid for it.

Foreclosure by Power of Sale

When the terms of a deed of trust are not met as expected, the legal action that can be taken is often referred to as foreclosure by power of sale. It is important recognize that this is not a judicial foreclosure. The distinction lies at the very heart of the definition of a deed of trust, which specifically separates itself by decreeing that mortgages will not be involved in the process at all. Judicial foreclosures refer to the sale of mortgaged property by the mortgagee upon default of the loan, thus differentiating it from foreclosure by power of sale.

Although there are similarities between a foreclosure by power of sale and a judicial foreclosure, there are distinct differences between the two. Purchasers who are involved in either type of foreclosure will maintain the same set of rights, but the practical differences should be apparent to the parties of each. Of primary concern for purchasers involved in a foreclosure by power of sale should be the possibility of litigation, which stems from the fact that the sale was never judicially approved. In essence, the title to a property will be less secure in cases of foreclosure by power of sale.

Legal Assistance from a Real Estate Lawyer in Scottsdale

Every aspect involved in the process of real estate law is complex, which is why these matters should only be handled by a legal professional in the field. Residents of Arizona are at particular advantage because they can resort to the professional skills of a knowledgeable attorney at the law office of Grant N. McKeehan, PLC. With an Avvo rating of Excellence, the real estate attorney has established himself as a force to be reckoned with in the field of real estate law, and past clients of the firm can attest to the success they experienced under the attorney's representation.

Whatever your position might be in the processes involved in a deed of foreclosure, you are encouraged to seek the legal support of Attorney McKeehan. For trustors, trustees, and any other party involved, there is legal advice to be sought and professional support to be had when you choose to work with Mr. McKeehan. Individuals, local businesses, and large companies alike can benefit from the knowledge and skill that the real estate lawyer has to offer, so don't hesitate to contact the firm today.

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Grant N. McKeehan, PLC - Scottsdale Estate Planning Attorney
Located at 4300 North Miller Road, Suite 220 Scottsdale, AZ 85251. View Map
Phone: (888) 913-8943 | Local Phone: (602) 791-6174.