A Minnesota deed of trust is used to secure real estate financing by placing the borrower’s property in trust until the lender has been paid back. The document will lay out the terms of the arrangement, including the loan amount, interest rate, payment schedule, and it will name the trustee to whom the title will be transferred.
Unlike a mortgage, under which the property must go through a judicial foreclosure if the borrower defaults, a deed of trust empowers the trustee to sell the property out of court to recoup the lender’s funds in case of default. This “power of sale” makes a deed of trust preferable to lenders because it saves them from the expenses, complications, and delays of a judicial process.
Related Forms (1)
Minnesota Promissory Note – A document that records a borrower’s promise to repay a loan and the terms of repayment.