reference
glossary.
25 terms
definition
A legal document used in some states instead of a mortgage that transfers property title to a neutral third party (trustee) as security for a loan. The trustee holds the title until the borrower repays the loan in full. This arrangement allows for faster foreclosure proceedings compared to traditional mortgages.
examples
- —California uses a deed of trust system where the title company acts as trustee until the homeowner pays off their loan.
- —When Sarah defaulted on her loan, the trustee initiated foreclosure proceedings under the deed of trust within 90 days.