Establishment of the 1st lien mortgage
Loan documents to be signed by borrowers when completing the property purchase include:
(i) A note that obliges the borrower to repay the entire loan amount to Auxilium and a trust deed to establish a mortgage lien on the property to secure the repayment of the loan obligations under the note.
The promissory note and trust deed are prepared by Auxilium’s legal advisor. Upon closing, the following acts are performed under the supervision of a licensed mortgage broker and the closing agent for the trust company (TitleCompany):
(ii) The borrower’s note and trust deed are issued for the borrower
(iii) The closing agent from the title company, who in America is comparable to a German notary, certifies the signatures of the borrowers on the trust deed.
(iv) The title company then submits the completed and notarized trust deed to the responsible government authority in order to have the mortgage lien entered in the first rank.
(v) The title company issues Auxilium an insurance policy that guarantees the legal validity of the mortgage lien on the property and the senior position of the mortgage lien in favor of Auxilium.
Find out more about how Auxilium financing works:
Or you can get more information about the Auxilium model in our exposé.