Consumer Compliance- week 5 Discussion Post Responses Assignment

Consumer Compliance- week 5 Discussion Post Responses - Assignment Example 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). 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