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A deed of trust is a legal security instrument where a borrower pledges real estate as collateral for a loan, detailing the obligation to repay the borrowed money. In simple terms, if someone takes out a loan to purchase a house and fails to repay it, the lender has the right to foreclose on the property. The phrase "if you don’t pay, you don’t stay" emphasizes that the borrower must keep making payments to retain ownership of the house. It’s important to distinguish a deed of trust from a deed, as they serve different legal purposes; a deed conveys legal title to the property.
