A deed of trust is similar to a mortgage in that it creates a lien against the property.
|•||The Trustor (property owner) deeds the property to a Trustee (neutral 3rd party) but retains possession.|
|•||Trustee holds the property on behalf of the Beneficiary (lender).|
|•||If the borrower (trustor) does not meet the terms of the promissory note, the trustee may sell the property to satisfy the note.|
|•||When the borrower pays off the note, the beneficiary notifies the trustee who issues a reconveyance deed.|