Who can be a trustee in a NC Deed of trust? This is a private mortgage loan made within family members.

The Trustee's function is to ensure that (a) if the Promissory Note is paid as agreed upon, that the Borrower receives title to the property or (b) if the Promissory Note is not paid as agreed upon, that the Lender receives title to the property (typically through directing a foreclosure). In this sense, the Trustee needs to be a completely neutral, as the Trustee may need to make a determination of whether the Promissory Note has been breached. As a result, I would not recommend that a family member be appointed as the Trustee under the Deed of Trust, as it (a) may be difficult for the Trustee to remain neutral (or at least maintain the appearance of remaining neutral) and (b) may cause family/relationship issues if the Trustee is put in a position where he or she has to be in the middle of a disagreement between the Lender and the Borrower. One of the most common functions of a Trustee is to direct the foreclosure of a home if a Promissory Note or Loan Agreement is breached. If your family member is not familiar with the procedure on foreclosure, he or she may not be a suitable choice. Also, if your family member would feel personally conflicted if he or she had to foreclose on the home (and remove the family), then her or she may not be a suitable choice. If you have any more questions about Trustees or Deeds of Trust, or if you would like to appoint an attorney as your Trustee, then feel free to contact me directly. You can find my contact information on my avvo profile or at http://www.kregerthacker.com.