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Forma de cesión de contrato por escritura. - Distrito de Columbia
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés.
For your convenience, the complete English version of this form is attached below the Spanish version.
A real estate deed of trust is a legal document that shows a property owner has borrowed money for a property purchase and uses the property as collateral.
When you take out a loan to buy a property, a real estate deed of trust is created. It allows the lender to place a lien on the property's title to secure the loan. If you default on the loan, the lender can use the deed of trust to start foreclosure proceedings.
While both secure loans with property, a mortgage involves two parties: the borrower and the lender. In contrast, a deed of trust involves three parties: the borrower, the lender, and a third-party trustee who holds the title until the loan is paid off or the property is sold.
The trustee is a neutral third party, often a title company or attorney, responsible for holding the legal title to the property until the debt is fully repaid or released.
Yes, a real estate deed of trust can be assigned or transferred between lenders. However, the terms and conditions of the loan usually remain the same, unless otherwise negotiated.
Once the loan is paid off, the lender will issue a deed of reconveyance, releasing the lien on your property title. This document indicates that the debt has been satisfied and the property is no longer used as collateral.
In District of Columbia, the foreclosure process typically involves a judicial foreclosure, where the lender files a lawsuit against the borrower to obtain a court order allowing the property's sale to satisfy the debt. The specifics of the process may vary, so it's advisable to consult an attorney for guidance.
The foreclosure timeline in District of Columbia can vary depending on various factors, but it generally takes around six months to a year to complete the foreclosure process. It includes court proceedings, notice periods, and potential redemption or reinstatement periods.
Yes, a borrower can potentially stop foreclosure by paying off the debt in full, curing any default, or working out an alternative solution with the lender such as loan modification or refinancing. It's crucial to act quickly and communicate with the lender to explore available options.
When the foreclosure sale doesn't cover the full loan amount, it results in a deficiency. Depending on the jurisdiction and individual circumstances, the lender may have the right to pursue a deficiency judgment against the borrower for the remaining balance.
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