A deed of trust involves a third party called a trustee, usually a title insurance company, who acts on behalf of the lender. When you sign a deed of trust, you in effect are giving a trustee title (ownership) of the property, but you hold the rights and privledges to use and live in, or on, the property. The trustee holds the original deed for the property until you repay the loan. Unlike a mortgage, a deed of trust also gives the trustee the right to foreclose on your property without taking you to court first.
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