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A deed of trust is a legal security instrument where a borrower pledges real estate to secure repayment of a loan. Simply put, it means that if someone borrows money to buy a house and fails to repay, the lender can foreclose on the property. During closings, it's emphasized that "if you don't pay, you don't stay," highlighting that homeowners must make payments to keep their property. The lender maintains the right to reclaim the asset if payments are not made. It’s important to note that a deed of trust is different from a deed, which represents legal title to the property.
