What happens to the original deed of trust upon refinance?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What happens to the original deed of trust upon refinance?
My husband financed 70 acres of land via a commercial balloon loan. The bank asked me to sign off on papers stating they had advised me of dowager’s interest in the property, which I did. I then found out they filed a deed of trust with both our names on it. The balloon loan is now due and my husband is in the process of refinancing with another balloon loan. I told him that I will not be signing anything this time. Is the original deed of trust valid or is it null and void since he is refinancing?
Asked on May 6, 2011 under Real Estate Law, West Virginia
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Here is my understanding of a deed of trust. A Deed of Trust is often used instead of a mortgage in the sale and purchase of real property other than agricultural farm land. Under the Deed of Trust, title is conveyed by the seller to a trustee instead of to the purchaser. The trustee holds the title as security to ensure the purchaser's performance of its obligations (including payment of the purchase price, maintenance and upkeep of the property, payment of taxes, etc). If the borrower defaults in payment, the balance becomes due and payable and the trustee may sell the property.
The Deed of Trust contains uniform covenants regarding payments, funds for taxes and insurance, prior mortgages, hazard insurance, occupancy as principal residence, care and maintenance of the property, protection of the lender's security, and other standard clauses. The borrower waives all right of homestead exemption in the property. A dowager's interest is a widow's interest and I am curious as to what you really signed. You need to bring the documents to an attorney to review here. If he is refinancing the loan it may not effect the original deed of trust but really it should replace the original. Is it with the same lender? Please seek legal help. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.