What is a "closed end deed of trust"?

Asked by Shortsalehelp?, 92880 Tue Feb 23, 2010

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Jenny A. Le’s answer
Jenny A. Le, , California
Tue Feb 23, 2010
First, a deed of trust is a document that evidences a lien on property given as security for a debt. Deeds of trust require the use of a trustee and vary from state to state.

Second, a closed end is a single loan transaction with specific term of months or years, specific payment, and has no provision for future advances. A loan is called closed-end credit because there's a set date when all of the debt needs to be paid back in full, plus interest.

Sometimes, the borrower has the option to choose a loan set up as a closed-end or an open-end second mortgage. An open-end loan functions like a credit card where the borrower uses the credit line, repay and repllenishes the available credit (revolving) for future advances.

So a closed end deed of trust is a legal secured document for a non-revolving loan.

I hope the information helps.
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Connie Bramb…, Agent, Rancho Cucamonga, CA
Tue Feb 23, 2010
Hi there,
It is just another term we don't hear much for the standard deed. It very simple means that there is a specific number of years that the loan has to be paid off in. You have a note which show all the particulars about your loan and then a deed of trust securing the note. Very standard.
Connie Bramble
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