Tax Lien Certificates

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Deed of Trust
Real Estate Investing Definition

The definition of Deed of Trust is:

Like a mortgage a security instrument whereby real property is given as security for a debt. However in a deed of trust there are three parties to the instrument the borrower the trustee and the lender (or beneficiary). In such a transaction the borrower transfers the legal title for the property to the trustee who holds the property in trust as security for the payment of the debt to the lender or beneficiary. If the borrower pays the debt as agreed the deed of trust becomes void. If however he defaults in the payment of the debt the trustee may sell the property at a public sale under the terms of the deed of trust. In most jurisdictions where the deed of trust is in force the borrower is subject to having his property sold without benefit of legal proceedings. A few States have begun in recent years to treat the deed of trust like a mortgage.

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