Depending on where you live, you may sign a deed of trust document along with your home loan forms. At My Tennessee Home Solution, we buy houses in Nashville, TN, so we’re well versed in deeds of trust and their impact on home sales.
Can you sell a house with a deed of trust? Consider our post below to discover the answer.
Deeds of Trust: What Are They, and How Do They Work?
A deed of trust is a legal agreement that assigns a third party to hold the title and deed to a property until the person holding the home loan pays it off in full. The trustee acts as a mediator between the borrower and the home loan lender, so understanding the trustee’s role in home sales is important.
The deed of trust allows the loan borrower to earn equity in their house while paying off the loan. After paying off the loan, the trustee dissolves the trust and officially transfers ownership of the residence to the borrower. A default on the loan will lead the trustee to work with the borrower to either repay the loan or initiate the foreclosure process.
A deed of trust isn’t the same thing as a mortgage. The property’s ownership isn’t in the hands of the lender, as it would be in a mortgage. Instead, the trustee holds the deed.
Selling a House With a Deed of Trust
Can you sell a house with a deed of trust? It’s certainly possible, and the process is relatively similar to the traditional way of selling with a mortgage.
A key difference in selling a house with a deed of trust is the need to get permission from the lender to sell the property. You would also have to alert your trustee of your plans.
The lender and trustee will draft closing documents outlining the lump sum you’d have to pay once the home sells. You must satisfy the loan amount to transfer the title to the buyer. If any profits remain after settling the debt and paying the closing costs, you can keep them.
If you need to sell fast and you know what you owe, you could opt for a cash home sale. Cash buyers purchase properties as-is and can close on real estate transactions in as little as a week. They will handle everything, from conducting a professional title search for a deed of trust to handling home improvements.
Sell Your House As-Is With or Without a Deed of Trust
Are you asking, “Can you sell a house with a deed of trust?” before putting your property on the market? If so, you can rely on our experts at My Tennessee Home Solution to provide a fair cash offer for your home in Nashville, TN. We understand the impact of a deed of trust on property transfers, and we go the extra mile to streamline the home-selling process for our clients.
Whether you’re overwhelmed by debt, facing foreclosure, or ready to list an unfinished home in Nashville, we’re the team to call. Contact My Tennessee Home Solution today at (615) 933-5431.
