A Massachusetts deed of trust allows a property title to be held by a trustee as security on a loan until the borrower has repaid the lender. This document is used as an alternative to a mortgage. Once the borrower has paid back the loan plus interest, they will be granted full ownership of their property. For the lending party, this type of financing arrangement is preferable to a mortgage as they won’t need to go through the court foreclosure process to recoup lost funds if the borrower defaults. Instead, the trustee can seize and sell the property through a foreclosure sale.
Related Forms (1)
Massachusetts Promissory Note – Relays the loan agreement between a lender and borrower. Deeds of trust are used to secure a loan made via a promissory note.