Deed of Trust

A deed of trust involves a borrower (trustor), a lender (beneficiary), and a neutral trustee. The borrower conveys title to the trustee to hold as security for the loan. If the borrower defaults, the trustee can sell the property through a non-judicial foreclosure process, which is typically faster and cheaper than a judicial mortgage foreclosure. In seller-financed transactions, the seller is the beneficiary. The deed of trust is recorded in the county land records, creating a public lien on the property. Contrast with a mortgage, which is used in eastern and some other states and requires judicial foreclosure in most cases.