Can You Sell a House With a Deed of Trust?
Many factors go into selling a house, including ownership, mortgages, and deeds of trust. If you’re searching for ways to “sell my house fast in Chattanooga,” you might also wonder, “Can you sell a house with a deed of trust?”
Chattanooga Property Solutions has years of experience making cash sales for houses. If you have a deed of trust, learn whether you can sell the property in our guide below.
What Is a Deed of Trust?
A deed of trust is a legal agreement that replaces traditional mortgages. It is essentially a legal promise that a property buyer will repay a home loan while a third-party trustee holds the house’s title until the loan is paid.
A deed of trust involves three parties:
- The lender or beneficiary whom the deed of trust protects
- The trustor or loan borrower who pays off the loan according to its terms and interest rates
- The third-party trustee or title company who retains the property’s title until the trustor pays off their loan
Trustees represent no one in these transactions, making them independent actors.
How Deeds of Trust Work
Suppose you have a residential property with a deed of trust and sell it before fully paying off your home loan. In that case, you’ll forego your equitable title, and your trustee will use the home sale proceeds to repay your lender. You’d get whatever money is left over.
On the other hand, if you pay off the loan by the end of its term, the trustee will dissolve the trust and give you the title to your home. You’ll then be the sole owner of the property.
Deed of Trust vs. Mortgage
Tennessee is one of several states that use deeds of trust instead of traditional home mortgages. With a mortgage, homeowners make loan agreements directly with their lenders and use their properties as collateral. Defaulting on a mortgage leads to judicial foreclosure and other time-consuming processes.
A deed of trust is similar, except it involves a third party as a trustee. Not paying a loan for a deed of trust will lead to nonjudicial foreclosure, which is more straightforward.
Can You Use a Deed of Trust To Sell a Home in Chattanooga?
Can you sell a house with a deed of trust? Yes, you can. The process isn’t much different than selling a mortgaged home. The difference is that you must get lender approval to sell the home for less than what you owe on your loan, which you must still pay off.
Contact Chattanooga Property Solutions Today To Start Your Home Selling Process
Now that you know the answer to “Can you sell a house with a deed of trust?” turn to our team at Chattanooga Property Solutions to buy your property. With our 20-plus years of experience, we know how to make fair cash offers for homes in any condition. Whether you need to sell a condemned house or sell a house with a mortgage, you’ll get personalized services from our professionals.
We at Chattanooga Property Solutions don’t take commissions or charge fees of any kind, so call (423) 454-3070 today to arrange your consultation.