Buying or selling in Berkeley Springs and seeing “deed of trust” or “mortgage” in your paperwork? You’re not alone. These two terms look similar on the surface, but they work a little differently once you dig in. Understanding the basics can help you move through closing with confidence and avoid surprises later.
Below, you’ll learn the key differences in West Virginia, what gets recorded in Morgan County, and how payoffs and releases work when it’s time to sell or refinance. Let’s dive in.
Deed of trust vs. mortgage
A deed of trust and a mortgage both secure a home loan with your property, but they aren’t identical.
- Deed of trust: Involves three parties — you as borrower (trustor), the lender (beneficiary), and a neutral trustee. The trustee holds legal title for security purposes and may have a “power of sale” if you default, depending on the document and state law.
- Mortgage: Involves two parties — you as borrower (mortgagor) and the lender (mortgagee). Enforcement often goes through the courts unless the document or law provides another path.
What this means in practice
- Foreclosure process: Deeds of trust often allow a non-judicial trustee sale when a power-of-sale clause exists. Mortgages more often require judicial foreclosure. Timelines and costs can differ, and exact procedures depend on the recorded instrument and West Virginia law.
- Who appears on record: A deed of trust lists a trustee in addition to borrower and lender. A mortgage lists borrower and lender without a trustee.
- When the loan is paid off: With a deed of trust, the trustee typically records a reconveyance or release. With a mortgage, a satisfaction or release of mortgage is recorded.
What to expect at a WV closing
In a financed purchase, you’ll sign several core documents:
- Promissory note: Your promise to repay the lender. This is usually not recorded.
- Deed of trust or mortgage: The security instrument that will be recorded to create the lien.
- Settlement forms and title documents: Closing Disclosure or HUD-1, the deed to the property, title insurance policy, and any payoff statements.
Who does what
- You (buyer/borrower): Sign the note and the deed of trust or mortgage.
- Lender: Is named as beneficiary or mortgagee and funds the loan.
- Trustee (if deed of trust): A neutral party, often a title company or attorney, who holds legal title for security purposes and may act if there is a default.
- Title company/closing attorney: Searches title, issues title insurance, prepares closing documents, and records with the Morgan County Clerk.
Recording and public records
The deed of trust or mortgage must be recorded in the county where the property is located. For Berkeley Springs, that means filing with the Morgan County Clerk. If a loan is later sold, an assignment is usually recorded to show the new holder of the claim.
Morgan County specifics
Checking land records
Morgan County Clerk maintains land records for Berkeley Springs addresses. Title searches and recordings run through this office. The clerk can advise on local recording fees and indexing practices.
What you’ll often see on title
- Recorded deed of trust naming a trustee with a date and instrument number.
- Satisfactions or reconveyances for loans that have been paid in full.
- Assignments documenting when a lender sells or transfers a loan.
Local logistics to plan for
Turnaround times can vary in smaller counties. Many closings rely on a local title company to coordinate recording and overnight deliveries. Trustees are often local title companies or attorneys, so confirm the trustee’s exact name on the recorded deed of trust. If you’re selling, get payoff statements early and make sure the title company has clear instructions for recording the release promptly after closing.
Title insurance and exceptions
Title insurance is the standard protection at a Berkeley Springs closing. Policies address recorded liens such as deeds of trust and mortgages. Your title commitment will list known exceptions, which usually include any recorded security instruments. Items not of record are generally not covered.
Payoffs, reconveyances, and releases
When you pay off a loan at sale or refinance, the lien must be cleared.
- Deed of trust: The trustee typically records a deed of reconveyance or release.
- Mortgage: The lender records a satisfaction or release of mortgage.
If you do not see a release or reconveyance recorded after payoff, ask your title company or lender to follow up. The settlement statement will show the payoff amounts, and the recording receipt from the Morgan County Clerk confirms when the release is on file.
Foreclosure basics in West Virginia
Foreclosure procedures depend on the language in the recorded instrument and state law. Deeds of trust often include a power of sale that allows a non-judicial trustee sale. Mortgages may require judicial foreclosure. Timelines and steps can vary. If you’re facing default or buying a property where default is an issue, review the recorded instrument and speak with a local real estate attorney for guidance specific to your situation.
Buyer and seller checklist
Use this quick list to stay on track:
- Recorded deed showing how you hold title.
- Recorded deed of trust or mortgage with instrument number.
- Trustee name (if deed of trust) and lender/beneficiary name.
- Any recorded assignments showing loan transfers.
- Recorded satisfactions or reconveyances for prior loans.
- Title insurance commitment and all lien-related exceptions.
- Payoff statements and clear instructions for recording releases.
- Closing Disclosure or Settlement Statement with recording charges.
- Recording confirmation from the Morgan County Clerk.
Work with a local guide
Choosing between properties is one decision. Understanding how your loan is secured and how releases get recorded is another. With the right local team, you can move from contract to closing with clarity and avoid delays tied to missing assignments or unrecorded releases.
If you’re planning a purchase or sale in Berkeley Springs, connect with the local team that lives this process every day. Reach out to Kesecker Realty, Inc. to talk through your goals and next steps.
FAQs
How do I tell if my loan uses a deed of trust or a mortgage?
- Check the recorded instrument in Morgan County’s land records. A deed of trust lists a trustee; a mortgage lists only borrower and lender.
Who holds title while a deed of trust is on my home?
- You hold equitable title and possession. The trustee holds legal title only as security for the lender. Your deed still shows you as the owner.
How will a prior loan payoff show on the buyer’s title in Morgan County?
- The title company should ensure a reconveyance or satisfaction is recorded so the old lien no longer clouds title. The settlement statement shows the payoff.
What should I expect when my loan is paid in full in West Virginia?
- For a deed of trust, the trustee records a reconveyance or release. For a mortgage, a satisfaction or release of mortgage is recorded.
Will a recorded deed of trust complicate my future sale in Berkeley Springs?
- Not more than a mortgage would. Both are liens that must be paid off and released. The difference shows up mainly in foreclosure procedures, not in routine sales.
