Secure Deeds LLC
Real Estate Secured Trust Deeds
The Mortgage Broker
Trust deed investments are generally available through mortgage brokers or real estate brokers. Those brokers engaged in arranging loans for borrowers on the borrowers’ real property using the investment funds of private investors are generally referred to as mortgage loan brokers. The advantage of using a mortgage broker is that a mortgage broker can arrange a higher interest rate than a personal lender can (see Usury Laws). The Mortgage Broker should be able to provide you with all the information relating to your trust deed investment, including:
1. Market value and equity level of the property.
2. Borrower information including financial standing and creditworthiness.
3. Title insurance policy information.
4. Escrow and settlement process involving funding of the loan or the purchase of the note.
5. Documents and instruments describing, evidencing, and securing the loan or purchase of the promissory note.
6. Loan payment servicing options.
7. Options to recover your investment when the borrower fails to pay. These sections are broken down further in individual pages on the left.
In summary, Mortgage Brokers will usually handle all the arrangements of your investment and generally will collect the payments on your behalf from the borrower or assign a servicing company to collect the payments. You should also receive a Lender/Purchaser Disclosure Statement describing the important aspects of your investment from the broker. The broker may even handle the foreclosure of the property if the borrower fails to pay the debt. However, the investor must make the effort to protect himself or herself by being familiar with the process and the elements of such an investment. Additionally, be sure to check the license status of the mortgage loan broker and/or other professionals assisting you.