What is the difference between a mortgage&a deed of trust?
A mortgage and deed of trust are similar because they are both used for the same purpose–to secure repayment of a loan used to purchase real property. However, a mortgage and deed of trust differ significantly in a foreclosure.MortgageA mortgage involves two parties–the borrower and the lender. Title to the real property is held by the borrow and the mortgage represents a lien against the real property held by the lender.Deed of TrustA deed of trust requires three parties: the borrower (also called the trustor); the lender (also called the beneficiary); and the trustee–a neutral third party, usually a title company. Legal title to the property is held by the trustee and will not be conveyed to the trustor until the loan secured by the deed of trust is paid in full.Deed of Trust: Loan DefaultA default in payment of the loan under a deed of trust will lead to a non-judicial foreclosure conducted by the trustee. The power of sale provision of the deed of trust gives the trustee the rig
