Property ownership often comes with terms and conditions. These conditions sometimes apply when you prepare to put a house on the market. Can you sell a house with a deed of trust?
Cash home buyers in Memphis, Tennessee, can make selling any property easier, including one with a deed of trust. Alan’s experience with Pyramid Properties gives him unique insights into the process. He outlines an answer to your question below.
What Is a Deed of Trust?
If you have a deed of trust attached to your property, you likely used the deed to finance your purchase. A deed of trust involves three parties:
- The lender provides the finances for the purchase.
- The borrower or beneficiary uses the loan for the purchase and pays the lender back.
- A neutral party, known as the trustee, keeps the title until the borrower pays the lender in full.
The trustee’s role of keeping the property title adds a player that a mortgage wouldn’t include.
What Are Your Responsibilities?
As the beneficiary, you are subject to the details outlined in the promissory note and the trust deed. Review these documents to familiarize yourself with your beneficiary rights and responsibilities. Some typical requirements outlined in a deed of trust include:
- Full loan repayment: You must repay the loan amount or risk judicial or non-judicial foreclosure.
- Equity title ownership: You still own the equitable title throughout the loan process. Therefore, you can change the property as you see fit and benefit from its appreciation.
- A neutral third party: Your trustee must not work to your or the lender’s benefit. They must hold the property title until you pay the loan. Then, they should transfer the title to you.
Can you sell a house with a deed of trust despite your limitations as a beneficiary?
Can You Sell a House With a Deed of Trust?
Yes, you can sell a house with a deed of trust. However, the sales process and profits might differ from selling a fully owned property. Still, a property sale can be a lucrative method for amicably ending the loan repayment process or avoiding non-judicial foreclosure.
You just have to play your cards correctly, review your deed allowances, and appropriately price the property. Get in touch with your trustee and determine the best avenues for your market and selling situation.
Selling Avenues for Beneficiaries
You can go about your property preparation and sale by setting an asking price equal to or greater than your loan. If you sell the property for less than what you owe, you might receive a new promissory note from your lender with future payment requirements.
Then, the trustee will divide the profits. They give the lender the owed amount before sending any remaining money to you.
Contact Alan with Pyramid Properties to Quickly Sell Your Property
Can you sell a house with a deed of trust? You can when you work with buyers like Alan with Pyramid Properties. Call 901-504-5555 to talk to Alan about a cash offer that covers your loan and learn about the best time to sell a house.