1. Chapter 10: Deed of Trust
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2. DEED OF TRUST PARTIES
Borrower = Trustor
Lender = Lender
Neutral Third Party = Trustee
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3. Comparison of a Mortgage with Deed of Trust
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4. Mortgage vs. Deed of Trust
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5. Mortgage vs. Deed of Trust (continued)
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6. Deed of Trust Document
 the purpose of this deed is to provide security for
that note. In other words, although this deed grants
and conveys title to the trustee, it is understood that
the quantity of title the trustee receives is only that
which is necessary to protect the note.
 this permits the borrower to continue to possess and
enjoy the use of the property as long as the
promissory note is not in default.
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7. Simplified Reconveyance Request
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8. Simplified Reconveyance
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9. Mortgage, Deed of Trust, & Land Contract
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10. DEED OF TRUST ADVANTAGES
Upon default, Lender can take possession of
property & collect rents
Time between default & foreclosure is short
Power of sale provision
Trustee already has title
Usually no statutory redemption
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11. Key Terms
Assignment of rents
Beneficiary
Deed of trust
Naked title
Reconveyance or
Release Deed
Trustee
Trustor
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