A Trust Deed Loan’s Underwriting & Approval Process
Here are some of the basics underwriting and processes our firm uses to screen its loan applicants. This is by no means a complete picture of every transaction we encounter, but we hope it answers some of your questions.
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The Advantage of Private Trust Deed Investing
With more banks now facing a credit crisis; many qualified borrowers approach private lenders out of necessity. With our firm; borrowers can find flexibility in underwriting and approval on loans that larger institutions cannot.
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Our clients invest in Trust Deeds Not Mortgages
Trust Deeds are not the same as mortgages even though people usually use the term "mortgage" interchangeably for both. Trust Deeds are decidedly more beneficial to investors especially when borrowers fall behind in payments.
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Trust Deed Lenders & Banks Differ On Evaluating Risk
Borrowers that come to private lenders arrive after having been turned down by traditional lending institutions like banks & credit unions. This does not mean private lenders take great risk.
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Changes In The Economy Make Deed Investment A Profitable Choice
We believe the country’s real estate market correction was somewhat predictable. It is safe to say that a correction was in order; and as a result opportunities now exist which have not existed for us in many years.
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Your Security Is Predicated By An Accurate Loan-To-Value Calculation
Private Trust Deed lenders, as a rule, view the LTV number as significantly more important than the borrower’s credit score. The “LTV” measures our ability to retain all that we are due; principal, interest, late charges, advances and the like.
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