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In this segment of the North Carolina real estate show, the focus is on the definition of a deed of trust. A deed of trust is a security instrument wherein the borrower pledges real estate as collateral for repaying a loan specified in 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 the phrase "if you don’t pay, you don’t stay," highlighting that homeowners retain ownership only while making their payments. Furthermore, a deed of trust is distinguished from a deed, as they serve different legal purposes in real estate transactions.
