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In this North Carolina real estate tutorial, a deed of trust is defined as a security instrument where a borrower pledges real estate as collateral for a loan secured by a promissory note. Essentially, it means that if the borrower fails to repay the loan used to purchase a home, the lender has the right to foreclose on the property. The speaker emphasizes that "if you don't pay, you don't stay," meaning homeowners must make their mortgage payments to retain ownership. Additionally, the tutorial clarifies that a deed of trust is different from a deed; the former is about securing the loan, while the latter represents legal title to the property.
