Deed of Trust

A Deed of Trust is a legal document used in real estate transactions, primarily as an alternative to a traditional mortgage. Key features include:

1. Involves three parties: borrower, lender, and trustee

2. Transfers legal title of property to a trustee

3. Trustee holds title as security for the loan

4. Allows for non-judicial foreclosure in case of default

5. Often used in states with streamlined foreclosure processes

6. Typically includes:

   – Property description

   – Loan terms

   – Borrower’s obligations

   – Power of sale clause

This document provides security for the lender while allowing the borrower to retain equitable title and use of the property. It can offer a faster, less expensive foreclosure process compared to traditional mortgages. However, it’s important for borrowers to understand their rights and obligations under a Deed of Trust, as the non-judicial foreclosure process can move quickly if payments are missed.