Posted by Rick the Probate Guy on August 01, 2008 at 02:38:29:
Consider using a standard grant deed and modify it to include the normal D.I.L language.
Also, I like to add both estoppel language and indemnification in case of problems down the line.
Lastly, I prefer to accept title in another entity vesting OTHER than my loan bene vesting just in case you still need to foreclose on the TD at a later date to perfect title, etc. Accordingly, your D.I.L agreement should not have language restricting your ability to foreclose on the TD; that would be counter-productive.
The reason you’ll want to take title in another entity is that if you don’t, recording a deed (back) to the lender of record will extinguish the trust deed by way of a merger of interest. If you loose the benefit of the trust deed, you can’t foreclose should this become req’d and then you’d probably have to go the quiet title action route. THis avoids that hassle.
All said, this keeps your options open.