Deed of Trust (Mortgage Alternative) - Pennsylvania

DEED OF TRUST

(Mortgage Equivalent - Pennsylvania)

Commonwealth of Pennsylvania

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

Date: [DATE]
Instrument Number: _________________ (Recorder's Use)
Property Address: [PROPERTY ADDRESS, CITY, PA ZIP]
Parcel ID: [PARCEL ID]

IMPORTANT NOTICE - JUDICIAL FORECLOSURE STATE

PENNSYLVANIA IS A JUDICIAL FORECLOSURE STATE. All foreclosures must proceed through the courts. Mortgages are the predominant security instrument.

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, Pennsylvania:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

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

TOGETHER WITH all buildings, improvements, fixtures, easements, rights, appurtenances, rents, and profits.

ARTICLE I - OBLIGATIONS SECURED

This Deed of Trust secures: (a) repayment of the Note with interest; (b) all other sums advanced; (c) performance of Grantor's covenants.

ARTICLE II - COVENANTS OF GRANTOR

Grantor shall: pay when due all amounts under the Note; maintain insurance; pay taxes; maintain the property; defend title; and comply with all laws.

ARTICLE III - DEFAULT AND FORECLOSURE

3.1 Judicial Foreclosure Required. Pennsylvania requires judicial foreclosure.

3.2 Act 6 Notice. Before foreclosure of a residential mortgage, a 30-day notice of intent to foreclose must be given, providing opportunity to cure (41 Pa. Stat. § 403).

3.3 Act 91 Notice. For loans covered by Act 91, the lender must provide information about emergency mortgage assistance.

3.4 Filing and Service. Beneficiary files a complaint and serves a 20-day summons on Grantor.

3.5 Right to Reinstate. Pennsylvania allows reinstatement up to one hour before bidding at the foreclosure sale, up to three times per calendar year (41 Pa. Stat. § 404).

3.6 Sheriff's Sale. Upon judgment, the Sheriff conducts the sale at public auction.

3.7 Deficiency. If the mortgaged property is sold to the judgment creditor and the creditor seeks to collect a remaining balance, the creditor must petition to fix the property's fair market value as a supplementary proceeding in the matter in which judgment was entered. The petition must be filed within six (6) months after execution and delivery of the sheriff's deed. 42 Pa.C.S. §§ 8103(a), 5522(b)(2).

3.8 No Post-Sale Redemption. Pennsylvania does not provide a redemption period after sale.

ARTICLE IV - MISCELLANEOUS

This Deed of Trust shall be governed by Pennsylvania law. Upon payment in full, Beneficiary shall execute a satisfaction suitable for recording.

SIGNATURE PAGE

GRANTOR(S):

_______________________________
[GRANTOR NAME]

ACKNOWLEDGMENT

COMMONWEALTH OF PENNSYLVANIA
COUNTY OF [COUNTY]

On this _____ day of ______________, 20___, before me personally appeared [GRANTOR NAME(S)], who acknowledged execution of this instrument.

_______________________________
Notary Public
My Commission Expires: ___________

EXHIBIT A - LEGAL DESCRIPTION

[INSERT COMPLETE LEGAL DESCRIPTION]

Parcel ID: [NUMBER]

Prepared by: [PREPARER NAME], [ADDRESS]