![]() Good to know: Texas does not use mortgages. Although a Deed of Trust is similar to a Mortgage, which is used in other states, it is not a Mortgage. Some people refer to a Trust Deed as a Mortgage Deed of Trust. The borrower’s interest in the real property is sold at a public auction and the money received at the sale is used to repay the borrowed money. The Texas Property Code sets out the Texas lien foreclosure process. Good to know: If the borrower defaults on the promise to repay the borrowed money, the lender is permitted to foreclose the lien to sell the property at a public auction. The borrower must own legal title to the property that is being pledged to secure the borrowed money. This is required by the Texas Property Code. Note: The document must include the correct legal description of the property so that the lien is created on the correct property. When a Deed of Trust is properly prepared, signed, and filed with the County Clerk, a lien is created on the property to secure the repayment of the borrowed money. ![]() The Trustee does nothing unless the Lender requests the Trustee to start the foreclosure process if there is a default on the loan.Ī Deed of Trust should be filed with the County Clerk in the county where the property is located. This person or entity is the Lender, or the person or entity to whom the money is owed.
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