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A deed of trust is a legal document that serves as a security instrument, wherein a borrower pledges real estate as collateral for a loan, typically for purchasing a home. In simple terms, this means that if the borrower fails to repay the loan, the lender can foreclose on the property. It's often summarized with the phrase, "if you don't pay, you don't stay," emphasizing that homeownership is contingent upon making payments. Additionally, a deed of trust is different from a deed; while a deed conveys legal title to the property, a deed of trust establishes the lender's right to reclaim the property if the borrower defaults on the loan.