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A deed of trust is a security instrument where a borrower pledges real estate as collateral for a loan repayment to the lender. In simple terms, it means that if the borrower fails to repay the money, the lender can foreclose and take the house. The lender retains the right to repossess the property if the borrower fails to make payments. It is important to distinguish between a deed of trust and a deed, as they are not the same thing.