What is a Deed of Trust, and why do I need one

[kimberlywrites]

What is the name of your state? Texas
I have been separated for one year from my husband. Divorce papers are being prepared. I am buying a house, with the proceeds agreed upon from a 'post-nuptial' agreement we signed last November. (long story as to why we have one of these now, instead of waiting to file for divorce. Details probably aren't necessary.)
The post-nup clearly states there will be no community property created during the remainder of our marriage.
Fast forward - I found a house for me and the two kids, near the soon-to-be-ex, to make it easier on the kids to see their dad as much as they would like. Also close to their school.
The problem now is the bank wants my stbx to sign something called a Deed of Trust. He is not a borrower, and he will not be on the title of the home. Not sure why they need this, and they can't seem to tell me either. Especially when I gave them a copy of the post-nuptual. I was under the impression it's basically for him to acknowledge I am buying property in my name only, what with Texas being a community property state and all.
He is hesitant to sign anything or have anything to do with this. I told him if he doesn't sign it, the bank will yank the financing. He said he's not "motivated" so sign this document - because I am the one who wants a divorce, after all. He also indicated he won't sign the Deed of Trust until I present him with divorce papers proving I am not asking for full custody of the kids, and am agreeing to zero child support.
I am supposed to go to closing THIS Friday. Divorce papers aren't ready yet - not my fault, talk to the divorce lawyer. My question - what is a deed of trust???? And is he blackmailing me or WHAT?

[pojo2]

Originally Posted by kimberlywrites

The post-nup clearly states there will be no community property created during the remainder of our marriage.

But aren't you doing just that since you are not divorced yet?

Deed of trust is a document that gives a lender the right to sell your property if you can’t repay your loan

A deed of trust is similar to a mortgage contract except that a deed of trust involves a third party called a trustee, usually a title insurance company, who acts on behalf of the lender. When you sign a deed of trust, you are in effect giving the trustee title (ownership) of the property, but holding on to the right to use and live in it. The lender or trustee holds the original deed of trust until you repay the loan on your home. Unlike a mortgage, a deed of trust also gives the lender the right to foreclose on your property without taking you to court first.

[kimberlywrites]

To clarify, the post-nup also says neither party has any interest or claim in anything acquired in either name during the remainder of the marriage. I'm learning that perhaps real estate doesn't apply.
And, regarding the Deed of Trust, which was just faxed over to me: It has me as the only borrower, which is correct. Then there are 17 pages of what the borrower (me) is obligated to. Then on the last page, there's a spot for him to sign above his name, which states: Mr. John Doe - Borrower.
He's not a borrower!!!!! Aaaaaaagh.
he won't sign anything that says he's a borrower. He's not even a co-signer. I did this all on my own. He's not going to be on the house title. Nothing. Heck, I wouldn't sign it if I were him, the way they have it now.
I was under the impression, okay I was flat out told, that the document would clearly indicate he is a NON-BORROWER. It doesn't. Not anywhere.

[John Se]

take title as "jane doe, a married woman, as sole and seperate property" he will need to sign off on that, probably by quit claim deed or whatever your title co wants. I have purchased property outside of my community property marriage this way but my wife did have to sign off.

[kimberlywrites]

Hi all,
The bank just told me that NO, he is not going on a deed of trust (the stbx) but what they want him to sign is a one-page document called a "Hold Harmless Agreement or Encroachment."
Any idea what that might say? I will get it tomorrow to see for myself, but I am losing sleep over the whole thing.
STBX said he won't sign anything until he gets his own lawyer to look at it. If this document in any way makes him responsible for the mortgage, he won't sign it. I wouldn't either, actually.

[acmb05]

Originally Posted by kimberlywrites

Hi all,
The bank just told me that NO, he is not going on a deed of trust (the stbx) but what they want him to sign is a one-page document called a "Hold Harmless Agreement or Encroachment."
Any idea what that might say? I will get it tomorrow to see for myself, but I am losing sleep over the whole thing.
STBX said he won't sign anything until he gets his own lawyer to look at it. If this document in any way makes him responsible for the mortgage, he won't sign it. I wouldn't either, actually.

It does not make him responsible for the mortgage it releases him from it. It also protects your home if by some chance he would get sued while you are still legally married, This way his creditors can not come after your home.

[kimberlywrites]

Originally Posted by acmb05

It does not make him responsible for the mortgage it releases him from it. It also protects your home if by some chance he would get sued while you are still legally married, This way his creditors can not come after your home.

Thanks for the info. Big sigh of relief. Now hopefully the document isn't in massive amounts of legalese, so it's clear to him what he's signing.

[Frank-Mori]

A deed of trust also provides one of the safest types of investments that is available to regular investors today. This is because of its security in an actual property, such as a piece of land, building, and other related real estate features.

Apart from the security brought to the investment as a result of the property itself, a deed of trust also provides a higher rate of return to the investor. This benefit can be explained because the borrowers are prepared to pay higher interest rates as private investors are quite flexible with their loans, and are not as rigid as the typical regulations imposed by standard lending institutions. By removing these regulations, private investors can then provide faster loans not restrained by the traditional rules of lending.

You can learn more about deed of trust at:

[URL="http://www.trustdeedbuyerinfo.com/what-is-a-deed-of-trust/"]what is a deed of trust ?[/URL]