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.
Missouri Land Deed of Trust: Understanding the Basics and Types In real estate transactions, a land deed of trust serves as a crucial legal instrument that outlines the terms and conditions of a mortgage loan agreement in Missouri. Also known as a trust deed or a deed of trust, it functions as a security instrument that conveys an interest in a property to a neutral third party, typically a trustee, on behalf of the lender. A Missouri Land Deed of Trust consists of three main parties: the borrower (also known as the trust or granter), the lender (also referred to as the beneficiary or mortgagee), and the trustee. The borrower is the individual or entity requesting the loan, while the lender provides the funds for the purchase or refinancing of the property. The trustee acts as a neutral party, holding legal title to the property until the loan is repaid. There are different types of Missouri Land Deeds of Trust, each tailored to specific scenarios and requirements. Understanding the types will help borrowers choose the most suitable option for their needs: 1. Purchase Money Deed of Trust: This type of trust deed is commonly used when a buyer takes a loan from the seller, typically in the form of seller financing. It secures the loan against the property being purchased, allowing the seller to foreclose in case of default. 2. Refinance Deed of Trust: As the name suggests, this type of deed of trust is utilized when a borrower chooses to refinance their existing loan. It allows the new lender to replace the original loan and secure it against the property. 3. First Deed of Trust: In Missouri, a first deed of trust is typically considered the primary mortgage on a property. It takes priority over any subsequent liens or deeds of trust, giving the lender a higher level of security. 4. Second Deed of Trust: Also known as a junior lien, a second deed of trust is a subordinate loan on a property, typically obtained after the first mortgage. It is secured by the equity in the property, which makes it riskier for the lender. In case of default and foreclosure, the first deed of trust will be satisfied before the second. 5. Wraparound Deed of Trust: This unique type of deed of trust allows the borrower to obtain additional financing without refinancing the existing loan. It consolidates the new and the original loan into one, with the wraparound deed securing both loans. 6. Non-Purchase Money Deed of Trust: This type of trust deed is used when a property is pledged as collateral to secure a loan that is not used for the purchase or refinancing of the property. It could be utilized for purposes such as home improvement loans or business financing. It is important to note that the specific terms and regulations regarding Missouri Land Deeds of Trust may vary, and it is advisable to consult with a qualified real estate attorney or mortgage professional to ensure compliance with local laws and regulations.
