Deed of trust
A document used in many states instead of a mortgage, where a neutral trustee holds title as security for the loan until it is paid. It usually allows non-judicial foreclosure, which is faster than going to court.
Also called: trust deed, DOT
Related terms
A loan used to buy real estate, with the property pledged as security. If the borrower stops paying, the lender can foreclose. Some states use a deed of trust instead of a mortgage document, but people call both a mortgage.
The signed promise to repay a loan, stating the amount, rate, payment schedule and what happens on default. The mortgage or deed of trust is the separate document that ties the debt to the property.
The legal process a lender uses to take and sell a property after the borrower defaults. Some states require a court case (judicial foreclosure), while others allow a faster non-judicial sale under a deed of trust.
A legal claim against a property that secures a debt, such as a mortgage, unpaid taxes or contractor bills. Liens generally must be paid off or released before the property can be sold with clear title.
Filing a deed, mortgage or other document with the county so it becomes public record. Recording gives notice of the new owner or lien and protects the buyer's claim against later ones.