How to Transfer Real Property to a Trust Deed
Mortgages and deeds of trust are the two common methods of holding a property as collateral. A trust deed will transfer ownership of your property temporarily to a trust to give control over foreclosure to an agent other than the lender, but a lender must agree to this transfer. A trust deed puts the process of collection and foreclosure into the trustee's hands, not the lender's. In many cases, this helps the borrower negotiate with a lender if payment difficulties arise. Therefore, there will be three parties involved: you, known as the trustor; the lender holding the mortgage, known as the beneficiary; and the trustee, which is usually a title company.
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Instructions
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Find a blank Deed of Trust form. You will need this to complete this transfer. See Resources for a sample copy. Make sure the Deed of Trust reflects the state and county in which the property is located.
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Contact a local notary public. A notary is required for this process. She must witness the deed transfer, sign, date and notarize the document before it is recorded.
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Arrange a meeting between yourself, any other current titleholders, the trustee (usually a title company) and the notary. You all must be present to consent to the transfer and sign the deed.
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Complete the deed transfer form. You and any other current titleholders are the "grantors." The trustee is the "grantee." This will temporarily grant ownership to the trustee. Make sure the notary signs and endorses the deed with her raised seal.
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Take the completed deed to the register of deeds in your county and pay the recording fee. Ask for a copy of the recorded deed, including the book and page number. The deed will automatically be transferred back to you and the other titleholders when the mortgage debt is fully repaid.
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References
Resources
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