Trust Deeds are different than Mortgages...

Often times when we discuss the concept of Trust Deeds with new investors, they equate what we do with “Investing in Mortgages”. However, Trust Deeds are not the same as mortgages even though people usually use the term "mortgage" interchangeably for both. The difference between a mortgage and a Trust Deed comes into play during the rare times when foreclosure is an issue. The Trust Deed holder’s position is more favorable by comparison; here’s why:

Trust Deeds are decidedly more beneficial to investors than Mortgages when borrowers fall behind in payments. With Trust Deeds, there is no need to go to court to initiate a foreclosure, as would be the case if the investor was a holder of a mortgage. The Trust Deed holder’s right to foreclosure is a non-judicial right. Holders of Mortgages don’t have such luxury; they must hire legal council and file a lawsuit equating with a loss of both time and money.

The holder of a delinquent Trust Deed moves through a foreclosure process which is dictated by law but is nonetheless non-judicial. The process is faster, less expensive and more conducive to the investor, for it bypasses the court system making it the most efficient way to foreclose, if need be.

Additional Topics of Interest:

We believe we are different from other Trust Deed investment firms. Learn more about how Liberty First defines its competitive edge and the reason for its four decades of successful longevity by reading: In Private Money Trust Deed Lending - Relationships Matter.

Each company has its own ‘Modus Operandi’ that contributes to its success. Reading: The Benefits Of Fractional Trust Deed Investing will give you a better idea regarding what makes Liberty First different from other Trust Deed investment firms.

The underwriting process provides the ‘bed rock’ that is essential to the success of every Trust Deed transanction offered to our investors. Discover the importance of the underwriting process involved with Trust Deed lending by reading: A Trust Deed Loan’s Underwriting & Approval Process.