| An "AITD" (All Inclusive Trust Deed)
transaction is a "Subject To" transaction in which the
seller also carries back from the buyer a promissory
note as part of the purchase price secured by a junior
trust deed on the property.
The amount of the buyer's promissory note is equal to
the amount that remains due on any senior trust deeds
and any portion of the purchase price that is financed
by the Seller. The seller's trust deed, therefore,
"includes all" the senior trust deeds within it; it is
said to "wrap around" any senior trust deed (s).
Generally, the buyer makes payments to the seller (or
collection account) in an amount sufficient to pay any
senior loan (s) and the seller. The seller (or the
collection account) is then required to make payments on
any senior loan (s) with the balance going to the seller
on the junior loan.
Sample All Inclusive Deed of Trust (AITD) |
