Investing in Trust Deeds is actually Levelator Pro a viable kind of investment for those looking to boost their financial futures. This kind of investment is associated with higher returns coupled with a lower risk. If you decide to invest in Trust Deeds, you should know that borrowers must have a valuable property to be placed as security for the amount to be loaned out. This is important because sometimes borrowers default in repayment and this can be a total loss if nothing was pledged as loan security.
Trust Deed investments are similar in function to mortgages. The major difference is actually the parties involved in these two types of investments. For instance, mortgage involves a lender and a borrower while Trust Deed involves a lender, borrower and a trustee.
A trustee acts as a third party and holds the legal title to the property that is going to be pledged as security for the loan. He does this on behalf of the lender until the loan is paid in full. The lender will take possession of the property if borrower defaults in repayment.
