A Missouri promissory note is a promise made by the buyer of property to pay a scheduled amount of money to the property owner. These documents are common when selling or purchasing property such as a home or other real estate. A deed of trust allows a property owner to foreclose on the property if the purchaser does not meet the terms of the promissory note agreement. When a seller and a purchaser create a promissory note, a deed of trust generally accompanies the agreement.
Using a Missouri promissory note deed of trust allows the owner of the property to foreclose on a home or structure if the purchaser does not meet the terms of the agreement. It outlines the foreclosure agreement and must contain certain items and provisions. Instead of having a lien against the property and sharing the property with the lien holder, the owner may foreclose and reclaim his property himself.
Missouri promissory notes and deeds of trust are made among a specific group of people. The purchaser of the property is known as the trustor. The beneficiary, if any, is the lender, such as a bank. The trustee is the person or entity that will hold the title of the property until the terms of the loan are met. The trustee may be the bank or the seller of the property. This person or entity will handle foreclosure proceedings, late payments and information concerning the satisfaction of the loan.
Deed of Trust
A deed of trust is a legal document that outlines the agreement made between the purchaser and seller in Missouri. It includes detailed information about the parties, the purchasing amount, the date of origination and maturity, a description of the Missouri property and any additional information pertinent to the agreement. One of the most vital components of the deed of trust is the legal description. Inaccuracy in the description can prevent foreclosure in a court of law.
A promissory note should include the exact amount borrowed from the lender or the total value of the Missouri property the purchaser will pay. The terms of the loan or payment schedule must be listed, such as what would happen if payments were missed, foreclosure procedures or any other applicable monetary information pertinent to the agreement.
- Real Estate Lawyers: What Is a Deed of Trust?
- American Bar Association. "Commercial Real Estate FAQs: What Is the Difference Between a Mortgage and a Deed of Trust?" Accessed July 31, 2020.
- Cornell Law School. "Deed of Trust." Accessed April 6, 2020.
- Consumer Financial Protection Bureau. "Deed of Trust." Accessed July 5, 2020.
- American Bar Association. "Glossary of Real Estate Terms: Deed of Trust." Accessed July 31, 2020.
- Consumer Financial Protection Bureau. "How Does Foreclosure Work?" Accessed July 5, 2020.
- American Bar Association. "Mortgage Note -- Deed of Trust Note." Accessed July 31, 2020.
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