What is the difference between a mortgage and a trust deed?
The fundamental difference between trust deeds and mortgages is the procedure followed if the borrower neglects the obligation to pay off the loan and thereby breaks the agreement. If a borrower defaults on a mortgage, the lender needs a court action in order to foreclose on the property; however, with a trust deed default, the lender can act to obtain a remedy without court involvement, which is typically much faster and less complicated than the formal court foreclosure process.
