In one sentence
A security instrument used in many states in place of a mortgage, conveying title to a trustee who holds it until the loan is repaid.
The longer version
A deed of trust involves three parties: the borrower (trustor), the lender (beneficiary), and a neutral trustee who holds title as security. On default, it typically allows a faster non-judicial foreclosure through the trustee's power of sale.
Whether a deal uses a mortgage or a deed of trust is state-driven and affects the foreclosure path, so lenders and counsel confirm the right instrument for the property's jurisdiction.
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