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What's the difference between a mortgage and a deed?

by Rmann4nsa973 from , California. Apr 6th 2017 Reply


Lisa Sorensen (texashomemortgages@gmail.com)
#1490 ranked lender in California - 3 contributions

A mortgage (instrument) sets out the amount of the mortgage (lien) used to purchase or refinance real property, and details the terms of repayment along with recourse, etc.... A deed is an instrument that shows ownership and vesting of real property. You can have a deed to convey ownership of property or a deed of trust with mortgage that conveys property with a mortgage lien (or two).

Apr 6th 2017
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Larry Gray (lgray_312_247)
#5 ranked lender in California - 1,127 contributions

"Promissory NotesTo fully understand the difference between a mortgage and a deed of trust, you must first understand promissory notes.Homebuyers usually think of the mortgage or deed of trust as the contract they are signing with the lender to borrow money to purchase a house. But that's actually not the case. It's the promissory note that contains the promise to repay the amount borrowed. (Learn more about promissory notes.)While a promissory note is basically an IOU that contains the promise to repay the loan, the mortgage or deed of trust is the document that pledges the property as security for the loan. It is the mortgage or deed of trust that permits a lender to foreclosure if you fail to make the monthly payments.MortgagesOften, people refer to a home loan as a "mortgage," but a mortgage is not actually a loan. The mortgage is a document that you give to the lender that creates a lien on the property. Certain states use mortgages, while others use deeds of trust. (Find out which states typically use mortgages.)"The above was all provided by Nolo Press (legal self help).

Apr 7th 2017
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,782 contributions

In the simplest of terms.. a deed is the title to the property, or document that say's who "Owns" the property.. the Mortgage is the security instrument that details the loan and repayment terms and conditions, and the consequences if you do not pay. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Apr 7th 2017
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