Michigan Deed of Trust Form

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A Michigan deed of trust is a document used together with a promissory note to obtain financing for real estate. A trust deed transfers the borrower’s legal property title to a neutral trustee to hold until the lender is repaid in full. It includes a power of sale clause that enables the trustee to sell the property out of court if the borrower defaults on their payments.

Michigan Deed of Trust Form

A Michigan deed of trust is a document used together with a promissory note to obtain financing for real estate. A trust deed transfers the borrower’s legal property title to a neutral trustee to hold until the lender is repaid in full. It includes a power of sale clause that enables the trustee to sell the property out of court if the borrower defaults on their payments.

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Last updated March 25th, 2025

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A Michigan deed of trust is a document used together with a promissory note to obtain financing for real estate. A trust deed transfers the borrower’s legal property title to a neutral trustee to hold until the lender is repaid in full. It includes a power of sale clause that enables the trustee to sell the property out of court if the borrower defaults on their payments.

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A deed of trust when submitted to the Register of Deeds for recording must be notarized and adhere to the following formatting guidelines[1]:

  • 8.5″ x 11″ or 8.5″ x 14″ paper
  • At least 10 point, black font
  • 2.5″ margin at the top of the first page
  • 0.5″ margin on all other pages and sides

Mortgage vs Deed of Trust

Michigan is one of the few states where both mortgages and deeds of trust are allowed.

A mortgage involves only two parties: borrower and lender. The borrower maintains legal title while they’re paying off their debt. If the lender wants to foreclose due to missed payments, they must go through the courts (judicial foreclosure).

A deed of trust involves three parties: the borrower, trustee, and lender. The trustee holds legal title and the borrower holds equitable title until the debt is repaid. If the borrower defaults, the trustee can quickly foreclose on the home out of court.

Deed of Trust (Preview)

Sources

  1. § 565.8, § 565.201(f)