Deed of Trust

1 topic · 3 sources

Real Estate

A legal document in which the borrower transfers the title to a 3rd party (trustee) to hold as security for the lender. When the loan is paid in full the trustee transfers title back to the borrower. If the borrower defaults on the loan the trustee will sell the property and pay the lender the mortgage debt.

Federal Trade Commission — Real Estate Marketplace Glossary

A document, used in many states in place of a mortgage, held by a trustee pending repayment of the loan. The advantage of a deed of trust is that the trustee does not have to go to court to proceed with foreclosure should the borrower default on the loan.

Ginnie Mae — Ginnie Mae Glossary of Terms

Same or similar to "mortgage." See "deed of trust" under "mortgage."

U.S. Census Bureau — Glossary Of RFS Terms And Definitions