What is a deed of trust? The settlement officer was correct: it is the mortgage document. My legal dictionary defines it as follows:
An instrument used in many states in place of a mortgage. Property is transferred to a trustee by a borrower (trustor), in favor of the lender (beneficiary), and reconveyed upon payment in full.
Although the laws on deeds of trust vary from state to state, here is an oversimplified explanation of a deed of trust.
In the early history of mortgage lending, lenders used only a mortgage document. This was recorded among the land records, and if the borrower defaulted on the mortgage payments, the lender had to go to Court in order to foreclose. From the lender’s point of view, this was a time-consuming and expensive process.
Accordingly, many years ago, some imaginative attorney (or lender) conceived of the idea of the deed of trust. At settlement, the seller would convey the property by deed to the buyer. The buyer would simultaneously convey the property – in trust – to one or two trustees selected by the lender. In effect, legal title (in many states) would be transferred to these trustees.The trustees would hold legal title until one of two events occurred:
The borrower does not become the homeowner until he has repaid the lender. Because the banks have the authority to foreclose on borrowers who are in default, the banks essentially own virtually every home in America that has an outstanding mortgage.
•The loan was paid off in full. Then the trustees (usually at the expense of the borrower) would convey the property back to the borrower, and release the deed of trust from land records.
• the loan went into default. Since the trustees owned the property, and the deed of trust contained language giving the trustees the power to sell the property upon a default, the trustees would arrange to have the property foreclosed upon by a private auctioneer (or the sheriff in some parts of the country at the Courthouse steps). If the borrower objected to the foreclosure, and believed he had legal defense to the foreclosure, the burden to go to Court to stop the foreclosure shifted to the borrower.
If you are a tenant why are you required to pay taxes on the property which is owned by the Bank?
Joint Tenancy
Joint tenancy is a type of home ownership where everyone on the title has an undivided interest. For example, if a husband and wife are on the title to the house as joint tenants, then they both own equal and undivided shares of the property. According to Realty Times, one or more of the joint tenants may destroy the joint tenancy by selling his ownership position in the property to another party, resulting in a type of ownership called tenants in common.
Tenants in Common
Tenants in common is a more informal method of taking title in which each owner owns a specific percentage of the property. If there are two owners on the title, each could own 50 percent of the property, or one tenant in common could own a greater percentage than the other. Realty Times states that if no form of ownership is specified when a house is purchased, courts in the United States tend to assume the intention was to be tenants in common
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The one thing most "homeowners," or "tenants in common," do not know, is that on all mortgages, the only signatures on the papers, are those of the "homeowners," or the "tenants in common!"
What's wrong with this picture, if you've not yet figured this out, is that the BANK is not securitizing the "Loan" with any third party, or borrowing, or "lending" any money, and thus, the mortgage is not a "Lend Contract!"
What the BANKSTERS are doing, is creating the money, on the spot, to secure the mortgage, and the INTEREST! Example: If the purchase price for your home is $250,000.00, the BANKSTERS merely attach a debit of $250K to your future earnings, and no money, or chattel, as in the $250K, is moved, other than to a debit note, which you are signing, and you consent to pay, in addition to the interest!
The interest, alone, will eat you alive, with the remaining balance passed on to lien holders, if there are any! And, you can bet there are lien holders, as in insurance & security professionals, just waiting for the "foreclosure," or a "probate," to collect anywhere from three to ten times the mortgage values!
For proof of this highly lucrative scam, look up Donald Hovde, former Director for the Federal Housing & Urban Development, and his offspring, Jason, Eric, and his prized Son, a Michigan politician; all of whom are scoring big on every HUD foreclosures from Maine to Florida, and California.
When the 1934 Glass-Steagle Act, which took on antitrust & other monopolies, was completely gutted, and destroyed in 1996, banks could then sell securities, as in insurance, and other "human trading" industries. Foreign banks were then allowed to enter the fray, as well, like Deutsch Bank & others.
Check out Hovde Securities, LLC, or Hovde Financials, LLC, if you are still unconvinced. See what they have to offer in their "engagements!" Hovde has operations in every State of the Union, and you may be be their next fraud victim.
Hovde specializes in identity theft, and commonly goes after widows, or single women w/children, attaching property liens, approved by their friends in the court, to the the deceased, and to the widows with probate estate issues. Often, the Hovdes have attached multiple insurance liens-in-probate, to withdraw three times the amount of the mortgage, and stick the widows with the insurance fraud they are, themselves, committing!!!
In all regions, the Hovdes employ a team of attorneys, and JUDGES, to infiltrate with the widow, and exact their profits, and to leave the widows in Bankruptcy, and the risk of assuming all liabilities associated with the mortgage. Threats, intimidation, coercion, and larceny, are the hallmarks of the Hovde family legend of crimes throughout the U.S.
By all means & methods, the Hovdes, with their headquarters in Chicago, are the perfect example of modern ORGANIZED CRIME, and need to be held accountable for their crimes, and will be held responsible in providing $$$Millions in relief to their victims, which to date, are 22 widows and their children!
For those of you who love the chase, and care for Justice, I would implore you to take on the charge, and uncover whatever you can on the Hovde Clan! These boys, along with their Father, need to go to jail!
You better watch out what you wish for. You may get it.
In fact, the deed of trust results in the lender having the ability to offer an overall lower interest rate on the loan. That's because mortgage banking is like any other business. The lender bases his prices on his costs and competition. In the case of a deed of trust, the lender knows that they won't be burdened with excessive foreclosure costs, should the borrower default and choose to fight the foreclosure. Lower costs, combined with existing competition between banks means lower interest rates.
In fact, the only people who benefit from a conventional straight mortgage are those who default. It allows them to delay what is almost always an inevitable loss of the property. The deed of trust benefits those of us who pay off our loans on time, since it means that we will pay less in overall interest.
If you force banks to go back to straight mortgages, then you can guarantee that costs will go up for all borrowers, including those of us who pay off their mortgages on time, so as to enable the banks to recoup the additional costs that they will incur, as a result the more costly foreclosure procedures. Remember that making it more difficult and time-consuming for the bank to foreclose on a loan default benefits only those who don't pay off their mortgage on time. In other words, those of us who pay off our loans on time, will end up paying more in interest on our loans, to cover the additional costs incurred by the banks, to foreclose on those who default on their loans. Personally, I don't want to have to pay more in interest, just to subsidize dead-beat borrowers.
As for taxes, similar logic applies. States could require the banks to pay the taxes on all of the properties for which the notes have not been paid off. But, as mentioned above, mortgage banking is a business and those taxes would become just another cost of doing business - costs that would be passed on to the customer. But when a business does it, they pass on more that just the cost of the taxes. They pass on the administrative costs that they incur, in paying those taxes, as well. The fact is that the home buyer will end up paying those taxes, either directly or indirectly. But paying those taxes directly will cost the home buyer less, since it takes the business overhead out of the equation.
As I stated in the beginning, watch what you with for, because you just might get it.
Worse, if all one ever 'pays' is banknotes (promissory instruments), Title At Law as In Equity never technically conveys to the 'occupant'. This is why a bank issues a 'Letter of Satisfaction', rather than a 'Letter of Seisen'. Debt is ... offset ... by government statute and as 'guarantor' of possessory right contingent on demand of 'superior title', government is the Trustee of Title, which is why taxes are laid on the ... Property ... it holds and the occupant's use of its 'benefits'.
Also, GOOGLE "fee simple" title vs "fee Interest"
It gets deeper when you are inside the Cinderella Doll House gate keeper to a PUD (planned Unit Development). The business people putting up the money to create the common areas and structure do many things to penny pinch at a buyers expense.
1) One will own a nursery with obsolete stock of trees. These are brought in at a $1.00 per tree, and the Home Buyer pays $500.00 each. (Little Profit there).
2) The original board of directors of the HOA consists mainly of builders since they are funding the common(s). They write the CC&R's to keep them in control - until the last Unit is Sold.
3) Sometimes a Community Development District is incorporated to assume management of common areas under fee; and the Board filters down as more buyers buy into Cinderella land.
4) This sli of hand trick hides the original Plat Development Directives, and Approve Ordinances that all have to abide with.
5) About the second tier of buyers into Cinderella Land have no Idea of the hidden directives and wind up getting screwed. Some times, the common areas suddenly become the second tier liabilities.
SO, it is not a good lawyer than can give you a good title. It is only your study.