Texas Commercial Loans

What You Need to Know about Trust Deeds SAN ANTONIO - Feb. 20, 2017 - PRLog -- Per Bruce Myles, owner and founder of Proactive Commercial Lending Group, LLC,"a Texas Commercial Lender,"Most people are familiar with how traditional mortgages work. A borrower applies for a loan and in exchange for a promise to repay, along with interest paid, the lender provides financing. The real property purchased by the borrower is then collateral against the loan amount. If the borrower falls into arrears or cannot repay the loan, the lender begins the foreclosure process. There are two types of foreclosures: judicial and nonjudicial. Depending on the jurisdiction, one or both are available to lenders. A judicial foreclosure involves the civil court system. The lender must sue the borrower for the collateral (the real property) to repay part or all of the loan. If there is a deficiency, the lender might be able to sue the borrower for the difference to make up for the loss.

What to Know about Trust Deeds Deeds of trust, also commonly referred to as trust deeds, are a security instrument used between borrowers and lenders. Much like a mortgage or traditional home loan, the trust deed is a form of collateral agreement to pay a debt. In general, deeds of trust are used to pledge real estate as means of obtaining a loan. Unlike mortgages, however, the take back or foreclosure process differs. In some instances, trusts deeds are mandatory for obtaining financing. What to Know about Trust Deeds Most people are familiar with how traditional mortgages work. A borrower applies for a loan and in exchange for a promise to repay, along with interest paid, the lender provides financing. The real property purchased by the borrower is then collateral against the loan amount. If the borrower falls into arrears or cannot repay the loan, the lender begins the foreclosure process. There are two types of foreclosures: judicial and nonjudicial. Depending on the jurisd