Deed of Trust Buyers — Sell for Cash

What Is a Deed of Trust?

A deed of trust is a legal document used in many states to secure a real estate loan. Unlike a mortgage, which involves two parties (borrower and lender), a deed of trust involves three parties:

• Trustor (borrower): The property buyer who signs the promissory note and deed of trust.
• Beneficiary (lender): The note holder who is owed the debt — this is you if you seller-financed the property.
• Trustee: A neutral third party (typically a title company) that holds legal title until the loan is paid off.

When you sell a property with seller financing in a deed of trust state, the buyer signs a promissory note (the promise to pay) and a deed of trust (which secures the note with the property). As the beneficiary, you can sell this note-and-deed-of-trust combination to a note buyer for a lump sum of cash at any time.

Deed of Trust vs. Mortgage: Why It Matters

The main difference between a deed of trust and a mortgage is the foreclosure process:

• Deed of trust: Allows non-judicial foreclosure. The trustee can sell the property without going to court. This is faster (often 60-120 days) and less expensive.
• Mortgage: Requires judicial foreclosure through the court system. This can take 6-18 months and involves significant legal costs.

Because non-judicial foreclosure is faster and cheaper, deed of trust notes are generally more valuable to note buyers. The quicker remedy for default reduces investor risk, which translates to better pricing for you as the seller.

What Affects Deed of Trust Pricing?

• Lien position: First-position trust deeds are worth significantly more than second-position.
• Payment history: 12+ months of clean payments commands the best pricing.
• Interest rate: Higher rates improve the cash flow yield, raising the offer.
• Borrower equity (LTV): More equity means less risk for the buyer.
• Property type: Residential properties get the best pricing. Commercial and land may be discounted.
• State: Non-judicial foreclosure states (most deed of trust states) get favorable pricing due to faster default remedies.
• Remaining term: Shorter remaining terms with reasonable amortization improve the offer.

How to Sell a Deed of Trust

1. Submit your note details: Property address, remaining balance, interest rate, payment amount, and payment history.
2. Receive your cash offer: Within 24 hours you get a written offer with transparent pricing.
3. Close and get paid: We order the appraisal and title search, prepare the assignment documents, and handle closing through a local title company. You receive funds via wire transfer.

Frequently Asked Questions

What is the difference between a deed of trust and a mortgage?

Both secure a real estate loan, but they differ in foreclosure process. A deed of trust allows non-judicial foreclosure (faster, less expensive), while a mortgage requires judicial foreclosure through the courts. The choice is determined by state law. Both can be sold to note buyers for cash.

Can I sell a second-position deed of trust?

Yes. We buy both first and second position trust deed notes. Second-position notes are priced at a deeper discount due to the subordinate lien position, but they are still saleable if the borrower has adequate equity and a good payment history.

Do you buy non-performing trust deed notes?

Yes. We purchase both performing and non-performing deed of trust notes. Non-performing trust deeds are valued based on property equity and the cost of foreclosure in the specific state.

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