all-inclusive deed of trust
all-inclusive deed of trustA purchase money deed of trust which is secondary to the seller's deed of trust to its own lender, which remains in place rather than being paid off at the time of sale.Now largely extinct because almost all commercial lenders have loan clauses allowing them to accelerate the note and demand all sums due immediately when a sale occurs. As a result, it is now virtually impossible to sell property without paying off the first mortgage or deed of trust, unless one engages in some type of fraud in order to prevent the lender from discovering the property has been sold.(Similar to a wraparound mortgage,but used in states that employ deeds of trust rather than mortgages.)
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.