A Vermont deed of trust is a deed used to secure a real estate loan by transferring the borrower’s property title to a neutral third-party (the “trustee”). By executing a deed of trust, the trustee will hold the property title for the time that the borrower remains indebted to the lender. Once the debt is repaid, the trustee must return the property title to the borrower. However, if the borrower fails to pay back the debt in accordance with the promissory note (see below), the trustee will foreclose the property on behalf of the lender. This foreclosure process can occur out of court so long as the process for nonjudicial sale is strictly adhered to.
Related Forms (1)
Vermont Promissory Note – Includes the agreed-upon conditions of a loan transaction between a borrower and a lender.