|
A trust deed is a legal document wherein the borrower transfers the ownership title of a real property to a trustee as security for a loan that has been granted to the borrower by a lender. Usually, in this form of arrangement, a lender would grant a sum of money as loan to a borrower for purchasing a property. However, the borrower is expected to transfer the deed of the purchased property as evidence of repaying the loan. Many times, there may arise several issues that might concern an agreement like this. These could bring upon legal questions that both parties may want an answer to. Below are answers to few of the more common legal questions about this type of loan arrangement: A loan agreement was signed between me and GMAC Mortgage for about three years on a property in Missouri. However, it appears that GMAC has estimated an under value of escrow accruals on property taxes for three years and flood insurance for one year. When the loan was granted, I got $2100 and now I have to pay $2850. What could be the best way out in this case? Could there be any compliance issues?
In a case like this, it appears that the additional amount that they expect you to pay is an adjustment and not a part of the loan amount. Therefore, in order to understand the exact cause of undervaluing the taxes and the huge difference in the amount, one would need to find out the type of method they applied to figure that out. Usually, in such cases, a person may be able to file a case against them, if they could provide evidence on the company’s negligence in calculating the proper amount. For doing that, all you would need to do is to give the court some proof about the mistakes they had made that have caused you immense trouble and harassment. If that could be the case, the company would have to pay you a compensation for the damage done to you. However, in case you are not able to show their negligence, then you would have no other choose but pay the entire amount. In that case, the county would decide on the rise and fall of your tax based on their re-assessments and modifications. What do you mean by second loan agreement and what is the purpose of their use?
Usually, when a homeowner applies for a loan for the second time, the second loan agreement is used. Typically, this document plays the role as a mortgage and should be filed at the deeds office, after it is signed and notarized. However, one would need to make sure that the document gets recorded by the clerk in the same county where the property is located. After the entire procedure is completed, the loan document is transferred to a third party called the trustee. Usually, until the loan is paid back, the document stays with the trustee. In case, the homeowner or the borrower fails to pay off the loan on time, the trustee of the loan has the legal right of foreclosure on that property, or can even sell it without taking the court’s permission. Most of the time, people who are not very acquainted with the rules and regulations of this type of loan arrangement and real estate law, can experience a lot of problems. Therefore, in order to avoid such legal complications and misunderstandings, a person would be better off seeking help from an Expert. If you need any clarification about your particular situation on the subject, you may wish to ask a real estate lawyer for legal insight based on an expert evaluation of your circumstances.
Related Articles -
trust deed, what is a trust deed, family trust deed, bare trust deed, private trust deed, 2nd trust deed, trust deed sale, trust deed registration, 1s,
|
