If you hold a deed of trust note in Montana, you should know that the note is a legal document showing the terms and conditions for paying back a loan on a property. It is generally accompanied by a deed of trust. A deed of trust note in Montana would often be 2-4 pages in length, though it can be as short as a single page or be many pages depending on the complexity of the transaction and the thoroughness of the preparer. The note is, in essence, an I.O.U. that shows what is owed by one party to another.
The mortgage note in Montana (the more technically correct word would be a deed of trust note in Montana and most other western states, though the terms mean the same thing), at a minimum, should show the term of the loan in years, interest rate, payment amount, date of first and last payment, names of payer and payee, what happens in case of a default, and the notarized signature of the payer. It is critical for both the individual or party that is paying and the one that is being paid to write down the specifics of what is expected so that there cannot later be any confusion or inaccurate assumptions. If the worst case scenario comes to pass and the payer defaults on the note, any vague terminology can hold up the entire foreclosure process and raise court costs tremendously. Homegrown notes and handshake agreements are often difficult to enforce in legal disputes.
Notes should be created by an attorney or title company, and are usually signed on the same date as the mortgage or trust deed and other closing documents. It is important for the payee to keep the original note in a safe place, as it is a legal document that would need to be presented in the case of a foreclosure proceeding or if the note is ever sold (notes are often sold in part or in their entirety to nationwide note buyers and brokers who specialize in note buying). Once the note has been completely paid off and the loan balance is zero, it is considered to be extinguished.