Debtor is obligated to pay the secured party attorneys fees. In consideration of the indebtedness, debtor conveys and warrants to trustee certain property described in the land deed of trust.
Arizona Land Deed of Trust: Overview and Types In Arizona, a Land Deed of Trust is a legal document that establishes a lien on a property as security for a loan. This deed serves as a crucial component of the real estate financing process and outlines the rights and obligations of the parties involved, namely the borrower, lender, and trustee. Understanding the different types of Land Deeds of Trust in Arizona can help borrowers make informed decisions and ensure smooth transactions. 1. Arizona Land Deed of Trust — Standard: The most common type of Land Deed of Trust in Arizona is the standard version. Under this arrangement, the borrower (also known as the trust or) transfers the legal title of the property to a third-party trustee. The lender, referred to as the beneficiary, holds the right to foreclose upon the property if the borrower fails to meet their loan obligations. 2. Arizona Land Deed of Trust — Wraparound: A Wraparound Deed of Trust occurs when a borrower obtains a new loan while keeping their original mortgage intact. The new lender assumes responsibility for the outstanding mortgage, and the borrower's payments are made to the new lender. This type of deed is often used when interest rates rise, making it advantageous for borrowers to keep their lower-rate original loan intact. 3. Arizona Land Deed of Trust — All-Inclusive: Also known as a blanket deed of trust, the All-Inclusive Land Deed of Trust allows a borrower to secure multiple parcels or properties with one trust deed. This type of arrangement is commonly used when a borrower owns multiple properties and wants to utilize them collectively as collateral to secure a loan. 4. Arizona Land Deed of Trust — Subordinate/Second Trust: In some cases, borrowers may require additional financing while still maintaining their existing Land Deed of Trust. In such situations, a Subordinate or Second Trust Deed is utilized. This type of deed is essentially subordinate to the first Trust Deed and enables the borrower to secure a secondary loan while keeping the priority of the original lien intact. 5. Arizona Land Deed of Trust — Assignment: Sometimes, the lender may assign the Land Deed of Trust to another party. This often happens when the loan is sold to another institution. The assignment of a Land Deed of Trust ensures that the new lender takes over the rights and responsibilities previously held by the original lender. In summary, the Arizona Land Deed of Trust is a legal instrument that establishes a lien on a property to secure a loan. Different types of Land Deed of Trust in Arizona include Standard, Wraparound, All-Inclusive, Subordinate/Second Trust, and Assignment. Understanding the specifics of each type is essential for both borrowers and lenders to navigate the real estate financing landscape effectively.
