Deeds of Trust

As mentioned earlier, the typical mortgage involves only two parties, the lender and the borrow¬er. However, in a trust deed, also known as a deed of trust, the borrower conveys the land to a third party. The third party holds the land in trust for the benefit of the holder of the note. The primary reason some states use this form is that the deed of trust can be foreclosed easily and quickly by a trustee's sale under a "power of sale" clause. In prescribed situations, court pro ceedings may be minimized or eliminated.