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A deed of trust is a security instrument in which a borrower pledges real estate as collateral for a loan, typically for purchasing a house. If the borrower fails to repay the loan, the lender has the right to foreclose and take possession of the property. In simpler terms, if mortgage payments are not made, the borrower risks losing their home. The phrase "if you don’t pay, you don’t stay" encapsulates this. It’s important to note that a deed of trust is different from a deed, which refers to legal title to the property.
