In 13 years of business, JVM Lending has never funded a single mortgage loan.
This is b/c there are actually no mortgages in CA and Texas, and JVM is really a “Deed of Trust” lender (as CA and Texas are “Deed of Trust” states).
Everyone uses the term “mortgage” generically to refer to any loan that finances a residential property purchase.
But, a mortgage is not the same as a deed of trust. Both are security instruments that tie promissory notes (loans) to a particular property (or properties).
I will ignore the particulars of how the instruments work, but with a deed of trust, it is usually much easier to foreclose.
With a deed of trust, there is a countdown that starts with a “notice of default” as soon as a borrower misses three payments in a row.
In “mortgage states,” when borrowers miss payments, lenders have to go to court to effectively sue for performance (to get the borrower to pay, or take back the property).
This is called a “judicial foreclosure,” and it is usually a much longer and more difficult process.
Most western states are “Deed of Trust” states, while many eastern states are “Mortgage States.”
Lenders often treat borrowers differently in “mortgage states” and even charge higher rates on occasion b/c it is more difficult to foreclose.
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167
