Definition
A three-party alternative to a mortgage where a trustee holds the property title until the loan is paid. Like a mortgage, but with an extra person who can foreclose faster.
Example Usage
In California, they used a deed of trust rather than a mortgage, meaning foreclosure could happen in 120 days instead of years of litigation.
Origin
Developed in states seeking faster foreclosure processes than judicial foreclosure
Fun Fact
About half of U.S. states use deeds of trust instead of mortgages, though most homeowners have no idea which they signed.
Source: Real estate finance and legal terminology
Related Terms
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See “deed of trust” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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