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A deed of trust is a legal security instrument in which a borrower pledges real estate as collateral for a loan. In simple terms, when someone borrows money to purchase a home, they agree that if they fail to make payments, the lender can foreclose and take possession of the property. At a closing table, it's often emphasized that "if you don't pay, you don't stay," meaning the borrower only retains the house if payments are made. It's important to note that a deed of trust is different from a deed; a deed represents legal title to the property.
