A deed of trust is a document that gives a lender the right to foreclose on a piece of property if the borrower defaults on the loan.

Some of the provisions are as follows:

(1) The lender can foreclose if you don't keep the house in good shape.

(2) The lender requires that you buy hazard insurance to pay off the loan if the home is destroyed.

(3) You must cooperate if foreclosure is initiated or your ownership is challenged.

(4) The lender can foreclose if you don't pay your property taxes promptly.

(5) The lender can act on your behalf--and charge you for it--if you don't fulfill your contractual obligations.

(6) The lender can charge interest on any bills it pays on your behalf.

(7) The lender gets part or all of the proceeds if the government buys your property.

(8) The lender may accept one late payment, but won't let you be habitually tardy.

(9) The trustee needs the power to update the agreement if future changes are made.

(10) The lender must formally relinquish its claim to your home when the loan is paid off.

(11) The lender can take control of your home if you default on the loan.

(12) This is how a foreclosure will be handled if you default.

(13) You can assign your home or the loan to someone else if the lender gives prior written approval.

(14) Terms of the contract won't change if you die and leave the home to heirs or the lender is acquired by another bank.

(15) Recording the deed makes it part of the public record and gives you and the lender more legal protection.

(16) The lender can make modest changes to the contract if they don't negatively affect you.

(17) You must allow the lender to enter your home as long as it gives you advance notice.

(18) State and federal law may give you and the lender other rights that aren't mentioned in this contract.

(19) Under certain circumstances, the lender can sue even after the statute of limitations has expired.

(20) The lender can demand that the loan be paid in a lump sum if you transfer ownership without first getting permission.

(21) The lender can demand that the loan be paid in a lump sum if you transfer ownership without first getting permission.

SIGNATURE BOX

You must sign this contract in the presence of a notary public.