Trust Deed

There are three parties in a deed of trust: the lender, the homebuyer or borrower, and a trustee.

The trustee is a third party who plays the role of intermediary in the real estate transaction. This is unlike a mortgage, in which there are just two parties involved: the lender and the borrower.

It is a document that comes into play when one party has taken out a loan from another party to purchase a property. (Seller Financing)

Trust deeds are easy to forclose.

The trust deed represents an agreement between the borrower and a lender to have the property held in trust by a neutral and independent third party until the loan is paid off.