Deed of Trust - Security Instrument for Real Property!

A Deed of Trust is a multi- (usually three) party security instrument transferring the title to real property as security for the repayment of a loan. If you have purchased a home, you have dealt with this deed and should know what it is.

Here's how it works. You as the owner are called the "trustor" on the deed. The neutral third party who bares the legal title (and who is called on to liquidate the property if need be) is called the "trustee". The lender of a mortgage for a property is called the "beneficiary". When your mortgage loan is paid off, the trustee is directed by the beneficiary to issue a deed of reconveyance to the trustor, which essentially releases the trust deed lien.

This special deed is recorded in public records, where it is available to anyone who wants to know. If there is a lien on your property, this is where they can find that information.

The deed is cancelled when the debt is paid in full. Until then, the trustee has the power to foreclose on your property if the debt is not paid or if any of the terms of your mortgage are broken, without going through the court system, making it easier and quicker than foreclosing on a mortgage.

Learn how to get a copy of your deed of trust so you can check it for accuracies.