How to File a Deed of Trust to Secure Assumption in Texas
In a divorce, the judge often awards the family home to one spouse, requiring her to pay off the trust deed. The lender, however, may insist that both spouses remain liable on the trust deed. In these circumstances, the spouse who does not get the house remains liable on the note. If the spouse awarded the house fails to pay, the title company can sell the house and sue the non-owner spouse for the deficit. Texas law provides a method for the second spouse to protect himself. He prepares a deed of trust to secure assumption (DTSA). The DTSA allows him to take back the house if his wife fails to make payments on the loan.
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Instructions
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Take the original DTSA, fully signed and notarized, to the county clerk's office in the county in which the family home is located. Locate the property department, called the Lands Record Division in Texas.
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Present the original trust deed to the clerk at the Lands Record Division. The clerk copies the deed and files the copy with the trust deed records.
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Pay the recording fee. In Texas, the fee for filing trust deeds increases as the number of pages increase; the longer your trust deed, the more you pay. Ask in advance, as the amounts vary between counties.
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Take back the original copy of the DTSA that the clerk returns to you. Look at the face page to be certain that the clerk stamped it with the official seal.
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Tips & Warnings
Immediately after filing a DTSA in Texas, make a copy of the original and deliver it personally or by certified letter with return receipt requested to the title company. In doing so, you are assured that the title company knows you intend to take back the house and pay the debt if your spouse does not keep up on her obligations.
To secure the protection offered by a DTSA, you must be vigilant and willing to act immediately if your spouse falls behind in payments. The title company may insist that you make up all back payments when you take over the property. The sooner you act, the less money you need to pay the title company up front when you take over the loan. Moreover, the title company may well foreclose itself if you do not do so. With so much at stake, consider consulting an attorney.
