Selling a first trust deed is a simple and financially rewarding undertaking for the investor who has taken the time to research and prepare for the sale of their trust deed. A first trust deed means the lender of a loan has a first priority lien on the property. In the event of a default the lender has the right to foreclose on the property. A first trust deed investor can sell his ownership interest in a first trust deed loan by soliciting the assistance of a mortgage broker.
Organize all of the information regarding your purchase and ownership history of the trust deed. Make a copy of the original promissory note given to you at the time you entered into the trust deed. Identify all loan payments made to you as well as any property taxes that have been paid on the property and any taxes that have not been paid and are delinquent.
Establish the market value of your trust deed by identifying the type of property that was financed under the trust deed. Identify the property's assessed value for tax purposes as well as any comparable sales data. Comparable sales data would include any property that is similar to your property and is located within the same community as your trust deed property that was recently sold at an arms length transaction.
Solicit from various mortgage loan brokers offer prices for your first trust deed. If you are not sure which mortgage loan broker to contact, begin by visiting your state's real estate professional licensing authority for a list of recommended brokers. Prepare a list that ranks the offers you received from highest to lowest.
Ask your mortgage broker's office to accept an offer for your first trust deed. Express in writing to this mortgage loan broker your desire to sell your first trust deed. Keep a record of this correspondence and any information you receive from the mortgage loan broker.
Enter into a purchase agreement with your mortgage loan broker. Read this document carefully for the purpose of identifying any additional costs that you will incur in the process of completing the agreement. Keep a copy of this document for your own records.
Complete the sale of your first trust deed by having a title company process the closing paperwork for you. Keep a copy of the final documentation for your own records.
Tips & Warnings
- When soliciting offers from different mortgage loan brokers, check their status with your the Better Business Bureau.
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- How to Write a Deed of Trust
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