The full explanation
Your signature on this document must be notarized. It is separate from the promissory note, which is your promise to pay. In some states, the lender can foreclose without going to court by following the notices in a "power of sale" clause in this document.
An example
At closing, Marisol signs the note and then the deed of trust in front of a notary. Afterward, the closing company records the deed of trust at the county office.
You will see it in…
- The documents you sign at closing (“Deed of Trust” or “Mortgage”)
- Your county's property records
- Foreclosure notices (“power of sale”)
