Posted by me on 5/18/05 3:41pm
Msg #38767

dot

What is the difference between deed of trust and mortgage

Reply by Anon on 5/18/05 3:44pm
Msg #38768

A deed of trust is the document that secures a mortgage.

Reply by me on 5/18/05 3:45pm
Msg #38769

Thanks. It's just the document the client signs that says "mortgage" on it?

Reply by Stephanie_CA on 5/19/05 2:01pm
Msg #39037

OYE VEY

Reply by BrendaTX on 5/18/05 3:56pm
Msg #38771

Somewhere in this archive there is a discussion on it by HisHughness if you want to search.

The note is the promise to pay in installments. It creates the debt and defines it. To create a mortgage loan, there are two documents to be signed. The NOTE and the DOT.

The mortgage is the document that creates the lien or conveys the property to the mortgagee as security for the debt. The DOT is the mortgage document usually used in Texas to secure payment of the debt.

They are very similar. Some states prefer mortgage and some use DOT. I have also seen "security instrument" used.

Reply by me on 5/18/05 4:12pm
Msg #38773

Thanks That was helpful

Reply by Lee/AR on 5/18/05 4:25pm
Msg #38778

a rose by any other name... is still a mortgage. Apologies for screwing around with a quote.

Reply by PAW_Fl on 5/18/05 10:33pm
Msg #38914

Both are the security instruments for the note. The biggest difference between the two is that a DOT actually transfers the ownership of the property to a third party, the trustee, normally a title company, which allows an easier foreclosure process for the lender. A mortgage does not change any ownership, simply places a lien on the property.