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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, typically obtained through a promissory note. In simple terms, if someone borrows money to purchase a home and fails to repay it, the lender has the right to foreclose on the property. During real estate closings, it's emphasized that "if you don’t pay, you don’t stay," highlighting that homeowners must make payments to retain ownership. It's important to note that a deed of trust is distinct from a deed; the deed represents legal title to the property, while the deed of trust serves as security for the loan.
