A common question with homebuyers is: how do I get my mortgage deed? We can help you learn all the basics of the document known as a mortgage deed, how it differs from other deeds, as well as how to obtain it.
So, how do you get your mortgage deed? In order to get your mortgage deed, you will need to contact the lender that holds your mortgage. They will be able to provide you with a copy of the deed. You may also be able to get a copy of the deed from your local county recorder’s office.
You don’t need to prepare a lot of documents or contact different authorities to get this done, the process is very straightforward, and it won’t take much of your time. Here is how it goes and what you should know about it.
How Do I Get My Mortgage Deed?
Although mortgages can be difficult to comprehend, getting your mortgage deed is actually quite simple. When you start the process of buying a home, the real estate and the mortgage against your title have to be registered with the county.
You should receive the deed to your new home address as soon as the title gets transferred to you. The mortgage lender is the one who will be sending the deed for you to sign.
The deed has to be signed in person, with a witness present, after which it will be sent to the conveyancing solicitor.
What Information Will You Need Prior to Signing the Deed?
If you are planning on signing the deed, you have probably considered this decision thoroughly. As you know, it is a legal, binding document, and as such, it is not something to take lightly.
Before you sign the document, make sure you’ve considered the following:
- You’ve gone over the details in the document – When you are about to sign the deed, make sure you’ve gone over the information multiple times and checked if they were correct.
- You have a suitable and present witness – A witness has to be over 18, of a sound mind, sober, and without financial interests in the document. So, ensure you have a witness that is qualified to witness the signing of the deed.
- You’ve reviewed the terms of the Mortgage Offer – You should be well aware of the terms and conditions under which you’re signing the document. After all, this could get you to lose the property, so don’t forget to check everything multiple times.
Why It’s Important to Have Your Mortgage Deed?
When a homebuyer obtains a loan in order to purchase a property, they are getting a mortgage. The legal document in which the terms and conditions of a mortgage are laid out is called a mortgage deed.
It provides the lender with secure interest in the property the borrower is obtaining, as well as protection in the case that the loan isn’t entirely paid off. If the borrower doesn’t pay the mortgage off, the deed grants the lender the right to take over the property or to foreclose.
That means the document is crucial for the entire mortgage process, and you should make sure you have it.
How to Differentiate a Mortgage Deed From a Deed of Trust?
A layperson might have a problem differentiating between different types of deeds. This is nothing uncommon, yet it is important to have this knowledge prior to getting into the process. Here is a table in which you can see the difference between a mortgage and a deed of trust.
|Mortgage Deed||Deed of Trust|
|Structure of the document||This is an agreement between a homebuyer and a lender which allows the bank to hold the title over a property.||On behalf of the lender will be a third-party trustee (an escrow agent or an employee of a title company), ensuring the homebuyer follows the agreed-upon terms of the deed.|
|The number of parties||An agreement between two parties – the lender and the borrower.||A contractual agreement among three parties – the lender, the borrower, and the third-party trustee.|
|Foreclosure process||Usually, the lender goes through litigation to be able to foreclose in the case of a default of the loan. Because the process is judicial it is more time-consuming.||Usually, the trustee and the lender enact a non-judicial foreclosure. Each state has their own laws, but more often than not, the two parties mentioned above obtain the right to begin the foreclosure process without involving the court system.|
When Does a Mortgage Deed Come Into Play?
A deed is filed in court, and later on, you can view it at a public registry office. The deed comes to a close when the borrower pays off the loan or defaults on it.
When this happens, the lender will file another document, stating that there is no longer a hold on the interest of the property. This document is called a “satisfaction of the mortgage”.
If the situation is different, and the borrower defaults on the agreement, the lender takes possession of the legal title of the property, allowing them to either auction it off or foreclose.
Don’t Worry About a Thing – Your Deed Will Reach You in Time
Getting your mortgage deed is the simplest part of the process since it is practically automatized, so it shouldn’t present a point of worry. What we urge you to give more attention to is to make sure you are aware of everything that is stated in a deed, before you decide to definitely sign it.
Once you have all the relevant details and are respecting the terms you agreed on, the rest should flow without any problems.