Four Newbie questions

General Real Estate Investing
1
  1. What is a deed & where is it kept?
  2. When my textbook says to “record” the Memorandum of Option, where do I record it?
  3. What is a promissory note?
  4. What is a deed of trust?
2

google is a powerful tool dude… You are asking very very basic questions that you can find on your own if you google them.

3

  1. The deed is the title to the property, sort of like your pink slip for your car… Keep it in your safe deposit box at the bank.

  2. You record documents at the County Recorder’s office

  3. A promissory note is a contract that promises you money. It’s an IOU, only more official.

  4. Deed of trust is actually going to vary in definition from state to state. Try googing “ways to hold title to real estate in your specific state”. The way that title is held affects how the property is inherited.

  5. Don’t take your legal advice from strangers on the internet. If you are mildly curious, that is one thng, but if you are about to do anything that involves contracts, deeds, or promisarry notes, you seriously need to consult with a lawyer.

4

Deed Of Trust has nothing to do with how property is inherited but more to do with how your state’s foreclosure laws work.

Some states require a judicial foreclosure. Title held in Deed must be foreclosed upon with a judicial foreclosure. Upon loan default a lender must petitition the court to order a foreclosure sale. The foreclosure sale will be conducted by the court (often called a sherriff’s sale).

Other states allow a Power Of Sale. In these states. a borrower gives title to a trustee to be held in trust until the mortgage loan is paid off. Title is held in a Deed Of Trust. If the borrower defaults on his loan, the language of the trust gives the lender the power to direct the trustee to sell the property at auction.

In a Deed of Trust state, when the mortgage loan is paid off, the trustee will transfer title to the borrower who will then hold title by Deed.

5

Isn’t that what this site is for also? Don’t be a jerk. Everyone (even you) started somewhere. Besides, Google isn’t always the best source for info. You end up with a million different and conflicting statements that just make your head spin even more.

ejvandalen- This is one of the best sites out there to ask /'s about REI so keep 'em coming. Good luck :beer

6

Thanks for the encouragement. I know that I could google those items too, but this way I hit 5 birds w/one stone; 4 questions answered and 1 more tickler on my way to not being a newbie anymore:)

Thanks for answering my questions.