This Deed Of Trust, Made This: Fill & Download for Free

$25,300.01 (1 penny over the opening bid)During the Great Recession a friend and I started buying houses on the court house steps in Reno, NV. It was an insanley cheap process that few people understood. Every morning we would drive around to look at the houses that had low opening bids, if they were vacant, we would let ourselves in, making sure there wasn't something catostrophically wrong and then we would go to the bank, get a bunch of cashier's checks made out to ourselves in different increments $1k, $500, $25k. If we won the bid, we would endorse the checks over to the trustee for the property in the closest amount just over the bid and they would give us a receipt. About a month later a deed would come in the mail along with the change for any overage we paid.One unusual day, the weather was extremely cold, it was snowing and only 3 or 4 people showed up to bid, we bought a house that we couldn't get inside of before hand for $25,300. It was so cheap we were willing to take the risk of it being entirely gutted because it was easily worth double what we paid for it. When we finally got inside it was actually in great shape. We fixed a burst pipe under the house and started renting it out for $750 per month. Eventually we ended up selling it for $99k a few years later to restructure some financing on some other properties, but it was one of the best deals we ever encountered.Keep in mind this was a risky business that required a lot of skill to pull off. While we never really lost money buying houses this way, we sure could have if we hadn't done our homework. All sales were final, no refunds! I remember one day, some smug yahoo showed up and bought a second deed of trust foreclosure, which meant they were subject to the first deed of trust (Wachovia was notorious for foreclosing on the 2nd first to trick people) this guy thought he bought a $300k house for $90k only to find out that he then owed Wachovia $250k for the first deed of trust! These days are long gone as more and more people figured out how to do it and there are less and less foreclosures.

Depending on where you live, you may not have a choice. Every person who is on title to the property must execute the Deed of Trust. In some states, spouses obtain property rights solely due to the marriage. If you live in one of these states, you’ll be required by the title company to sign the DoT/mortgage regardless of whether you are a record owner or not.The only benefit to executing a deed of trust is that you have been made aware of and agreed to the property being offered as security for a loan and also you must receive notice of a foreclosure action.

I have never won a property at a sheriff sale. But I have participated in many non-judicial foreclosures, know as deed of trust foreclosure. Foreclosures which are done by the Deed of Trust (DOT) trustee, sometimes an attorney, but can be a real estate broker in some states as well. The benefit being that to foreclose on a deed of trust there is no court involved. Simply paperwork processing and advertising of the sale. In a deed of Trust action the maximum credit bid is amounts owed under the deed of trust must be indicated in the Deed of trust documentation. But can be any amount less than that number as well. The DOT will list terms of default section in the documentation. Priorty of lien is very important in this area. I once made a bid on a second position DOT assuming it was a first. I was outbid by a greater fool. The first DOT still was owed almost the entire value of the property so the buyer at the sale was likely very upset at the purchase. This was a sale where 10K cashiers check must be tendered on the spot prior to bidding. The remaining amount due in cashier check the following day by 5pm.