Consumer Compliance- week 5 Discussion Post Responses - Assignment Example

CONSUMER COMPLIANCE- WEEK 5 COMMENTS ON RESPONSES Comment on Collette’s post  A mortgage and a deed of trust are twosimilar documents that used in securing a note and offering protection to a lender. The basic difference is that a deed of trust has three parties involved, borrower, lender and trustee, while a mortgage has only two parties involved, borrower and the lender (Bevans, 2009). Using Deed of Trust is often more efficient because it allows for a quicker foreclosure time than judicial foreclosure in the case of a mortgage.

The trustee is able to get the loan back on behalf of the lender without having to go through court procedures that may be time-consuming (Haupt & Haupt, 2006).2. Comment on Erik’s post A mortgage and a Deed of Trust helps in making sure that the loan is paid back by the lender. They secure the loan’s repayment by placing a lien on the property (Bevans, 2009). In a mortgage, the lien gives the right to the lender to sell the property and recover money while a Deed of Trust gives a lien to a trustee.

In case of default, a mortgage requires that the judicial foreclosure which is often costly while a Deed of Trust allows for non-judicial foreclosure which is often faster and less costly (Haupt & Haupt, 2006).3. Comment on Earl Jones’ post Both the documents help in securing a loan and provide mechanisms for recovery the loan incase the borrower defaults. A mortgage gives foreclosure rights to the lender while a Deed of Trust gives the rights to the trustee. Even though Deed of Trust seems to be the most efficient method because it allows for faster foreclosure time than a mortgage, it complicates the process because it has more parties involved (Haupt & Haupt, 2006).

However, incorporating a trustee facilitates the foreclosure process because that is their area of specialization. They have the necessary man power to easily foreclose. Nevertheless, a Deed of Trust requires that proper notices be posted and rules followed, which makes it equally time-consuming (Bevans, 2009).Bottom of FormReferencesBevans, N. R. (2009). Real estate and property law for paralegals. New York: Aspen Publishers.Haupt, K. J., & Haupt, K. J. (2006). Washington real estate fundamentals.

Bellevue, WA: Rockwell Pub.