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Deed of Trust

Instead of a mortgage, a deed of trust is where legal title to a property is entrusted to one or more trustees to secure the repayment of a loan.

Example:  Ryan borrows $60,000 on his property from lender Jerry. Ryan provides a deed of trust that is held in the name of Samuel, a trustee. If Ryan defaults, lender Jerry will foreclose on borrower Ryan to gain possession of the property.