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Definitions of Deed of Trust

A deed of trust is recorded at the time a loan is taken on the property and is used in place of a mortgage. A deed of trust involves three parties. the borrower, or trustor, the lender as the beneficiary, and a neutral third party as the trustee, who holds title until the note is paid in full. The deed of trust stays in place until the loan is paid. The trustee holds the power to foreclose on the property until the debt is paid in full. The deed of trust system allows the trustee to foreclose on a property without going through the courts. This is often seen to be faster than recording a mortgage that requires court approval to foreclose. California is a Deed of Trust state

Alternate spellings of Deed of Trust: deed of valuation