Deed of Trust
While many states only use mortgages to place liens against property, others use deeds of trust (sometimes called trust deeds). The deed of trust is placed “in trust” with a third party, usually a title or a trust company.
What if the state where the property is located permits both morgages and deeds of trust?
Many states authorize both forms of liens against real estate. Most often the lender will offer a loan based on one form or the other of indebtedness. Usually in those states where both mortgages and deeds of trust are available, the lender will offer a loan based on a deed of trust rather than a mortgage.
