Episode 10: What Is a Deed of Trust (And Why Not Knowing Could Cost You a Fortune)

What happens if you lend money on real estate without getting paid back? In this episode of Growing The Money, Rich Lennon explains why understanding a Deed of Trust is critical to protecting your investment. He breaks down how a deed of trust works, who the key parties are, and what legal language must be included to secure your money properly. Rich also highlights the difference between a mortgage and a deed of trust, and why failing to know these details could cost lenders thousands of dollars.What You’ll Learn in This Episode:(00:36 – 01:51) Importance Deed of Trust to Get Money Back(01:51 – 02:56) Deed of Trust vs. Mortgage: Judicial vs. Non-Judicial States(03:04 – 03:55) Trustees’ Role and Foreclosure Process Explained(04:06 – 05:28) The Three Parties in a Deed of Trust and Their Roles05:28 – 06:59) Clear Property Descriptions and Importance of Schedule A(06:59 – 08:33) Financial Obligations: Including Loan Terms in Deed of Trust(08:33 – 10:09) Borrower’s Ongoing Responsibilities to Lender(10:48 – 11:28) Defaults and Foreclosure Procedures in the Deed of Trust(11:28 – 12:59) Cross Default, Cross Collateralization, and Due-on-Sale Clauses.(12:59 – 14:00) Eminent Domain and Condemnation: Lender’s Priority(14:00 – 14:41) Trustee Substitution and Ensuring Foreclosure Can Proceed(14:41 – 15:02) Heirs, Assigns, and Successors: Ensuring Loan EnforceabilityWho This Episode is ForPrivate lenders and real estate investors securing loans on propertiesNew lenders wanting to avoid costly mistakesAttorneys and real estate professionals advising clients on secured transactionsBorrowers who want to understand lender protectionsWhy You Should ListenIf you’re lending money on real estate, understanding how to secure your loan properly and what happens if a borrower defaults is essential to protecting your investment. Rich walks through real-world examples and gives clear action steps to avoid losing money.Follow Rich Lennon here:Website: https://richlennon.com/Facebook: https://www.facebook.com/rich.lennon.121Instagram: https://www.instagram.com/richlennon92/#