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A deed of trust is a security instrument where a borrower pledges real estate as collateral for a loan secured by a promissory note. In simpler terms, when someone borrows money to purchase a home, they agree that if they fail to make repayments, the lender can foreclose on the property. This concept is summarized by the phrase, "if you don't pay, you don't stay," meaning that homeowners must make payments to retain ownership. It's important to note that a deed of trust is distinct from a deed; a deed represents legal title to the property, while a deed of trust is about securing the loan.
