Deed of Trust (Mortgage Alternative)

DEED OF TRUST

(Mortgage Equivalent - Kentucky)

Commonwealth of Kentucky

WHEN RECORDED RETURN TO:
[NAME]
[ADDRESS]
[CITY, STATE ZIP]

Date: [DATE]
Document Number: _________________ (County Clerk's Use)
Property Address: [PROPERTY ADDRESS, CITY, KY ZIP]
Parcel ID (PVA Number): [PARCEL ID]

IMPORTANT NOTICE - JUDICIAL FORECLOSURE STATE

KENTUCKY IS A JUDICIAL FORECLOSURE STATE. All foreclosures must proceed through the courts. Non-judicial foreclosure is not permitted. This template is structured as a deed of trust but will be treated as a mortgage under Kentucky law.

DEED OF TRUST

THIS DEED OF TRUST is made this [DAY] day of [MONTH], [YEAR], by and among:

GRANTOR (Borrower):
[GRANTOR NAME(S)]
[ADDRESS]
[CITY, STATE ZIP]

TRUSTEE:
[TRUSTEE NAME]
[ADDRESS]
[CITY, STATE ZIP]

BENEFICIARY (Lender):
[BENEFICIARY/LENDER NAME]
[ADDRESS]
[CITY, STATE ZIP]

RECITALS AND GRANT

WHEREAS, Grantor is indebted to Beneficiary in the principal sum of [PRINCIPAL AMOUNT] DOLLARS ($[AMOUNT]), as evidenced by a Promissory Note of even date herewith (the "Note");

NOW, THEREFORE, Grantor does hereby grant, bargain, sell, and convey unto Trustee, in trust, the following described real property situated in [COUNTY] County, Kentucky:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS], [CITY], Kentucky [ZIP CODE]

TOGETHER WITH all buildings, improvements, and fixtures now or hereafter placed thereon; all easements, rights, appurtenances, rents, royalties, and profits.

ARTICLE I - OBLIGATIONS SECURED

This Deed of Trust secures to Beneficiary:
(a) The repayment of the debt evidenced by the Note, with interest, and all renewals, extensions, and modifications;
(b) The payment of all other sums, with interest, advanced under this Deed of Trust;
(c) The performance of Grantor's covenants and agreements under this Deed of Trust and the Note.

ARTICLE II - COVENANTS OF GRANTOR

Grantor covenants and agrees as follows:

2.1 Payment. Grantor shall pay when due the principal and interest on the debt evidenced by the Note and all other sums secured hereby.

2.2 Insurance. Grantor shall keep the improvements insured against loss by fire and other hazards, with Beneficiary named as loss payee.

2.3 Taxes and Assessments. Grantor shall pay before delinquency all taxes, assessments, and charges against the Trust Property.

2.4 Maintenance. Grantor shall maintain the Trust Property in good condition and repair and shall not commit or permit waste.

2.5 Defense of Title. Grantor shall defend title against all claims.

2.6 Compliance with Laws. Grantor shall comply with all laws, ordinances, and regulations affecting the Trust Property.

ARTICLE III - DEFAULT AND FORECLOSURE

3.1 Events of Default. The following shall constitute Events of Default:
(a) Failure to make any payment when due under the Note or this Deed of Trust;
(b) Breach of any covenant or agreement herein;
(c) Material misrepresentation by Grantor;
(d) Transfer of the Trust Property without Beneficiary's prior written consent;
(e) Bankruptcy or insolvency of Grantor.

3.2 Judicial Foreclosure Required. Kentucky requires judicial foreclosure for all mortgages and deeds of trust. Beneficiary must file a lawsuit in circuit court.

3.3 Pre-Foreclosure Period. Loan servicers typically wait 120 days after the homeowner fails to make mortgage payments before starting foreclosure proceedings.

3.4 High-Cost Home Loan Notice. For high-cost home loans, before filing a foreclosure complaint, the lender must provide a notice of default to the borrower that gives thirty (30) days to cure the default and reinstate the mortgage.

3.5 Filing and Service. Beneficiary initiates foreclosure by filing a lawsuit and serving Grantor with a summons and complaint. The court will conduct hearings and review documents.

3.6 Notice of Sale. Details of the sale, including date, location, and conditions, must be published in a local newspaper for three (3) weeks leading up to the sale.

3.7 Foreclosure Sale. The sale typically occurs at least one month after the court rules against the homeowner. The property is sold at public auction.

3.8 Redemption Period (KRS 426.530). If the home sells for less than two-thirds (2/3) of its appraised value at the foreclosure sale, Grantor has six (6) months to redeem the property.

3.9 Writ of Possession. Under Kentucky law, the new owner from the foreclosure sale gets the right to possess the property after ten (10) days' notice to the former owners. The purchaser can then obtain a writ of possession from the court.

3.10 Deficiency Judgment. Kentucky permits deficiency judgments. If the sale proceeds do not cover the debt, the lender may seek a deficiency judgment against Grantor.

ARTICLE IV - RELEASE

4.1 Satisfaction. Upon payment of all sums secured hereby, Beneficiary shall execute a Release of Mortgage suitable for recording.

4.2 Recording. The release shall be recorded with the County Clerk in the county where the Trust Property is located.

ARTICLE V - RECORDING REQUIREMENTS

5.1 Recording. This Deed of Trust shall be recorded with the County Clerk of [COUNTY] County, Kentucky.

5.2 Recording Tax. Kentucky recording tax shall be paid upon recording in accordance with applicable statutes.

ARTICLE VI - MISCELLANEOUS PROVISIONS

6.1 Governing Law. This Deed of Trust shall be governed by Kentucky law.

6.2 Successors and Assigns. This Deed of Trust binds and benefits the heirs, executors, administrators, successors, and assigns of the parties.

6.3 Severability. If any provision is held invalid, all other provisions remain in full force.

6.4 Notices. All notices shall be in writing and sent to the addresses set forth above.

6.5 Entire Agreement. This Deed of Trust and the Note constitute the entire agreement of the parties.

ARTICLE VII - RIDERS AND ADDENDA

The following riders are attached hereto and incorporated herein:

☐ Adjustable Rate Rider
☐ Condominium Rider
☐ Planned Unit Development Rider
☐ Second Home Rider
☐ 1-4 Family Rider
☐ Other: [SPECIFY]

SIGNATURE PAGE

IN WITNESS WHEREOF, Grantor has executed this Deed of Trust as of the date first written above.

GRANTOR(S):

_______________________________
[GRANTOR NAME]
Date: _________________________

_______________________________
[GRANTOR NAME]
Date: _________________________

ACKNOWLEDGMENT

COMMONWEALTH OF KENTUCKY
COUNTY OF [COUNTY]

The foregoing instrument was acknowledged before me this _____ day of ______________, 20___, by [GRANTOR NAME(S)].

_______________________________
Notary Public, State at Large, Kentucky
Notary ID: ____________________
My Commission Expires: ___________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

The land referred to herein is situated in [COUNTY] County, Commonwealth of Kentucky, and is described as follows:

[INSERT COMPLETE LEGAL DESCRIPTION]

PVA Parcel ID: [NUMBER]

This document prepared by:
[PREPARER NAME]
[ADDRESS]
[PHONE]
[EMAIL]