A mortgage deed is a legal document which grants the legal right and interest to a lender (mortgagee) in a property which has been pledged by the borrower (mortgagor) as security for a loan. For example, if you opt for mortgage loan to purchase your house, then you will have to sign a mortgage deed giving the lender a lien on your home.
It is a type of mortgage in which a borrower transfers his/her legal rights of ownership on a property to a lender as security for loan.
A promise-to-pay document and trust deed are required by the lender for securing the repayment. Mortgages or trust deeds acts as claims and liens against the property’s title, and offers the right to sell the property to lender, in case you fail in repaying the debt.
Parties and Foreclosures
A mortgage agreement requires a lender and a borrower. A deed of trust requires a third-party and the trustee who will holds onto your property’s title until you repay the loan. The trust deed foreclosures are handled differently from the mortgage foreclosures.