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In this segment of the North Carolina real estate show, a "deed of trust" is defined as a security instrument in which a borrower pledges real estate as collateral for a loan secured by a promissory note. Essentially, if the borrower fails to repay the loan, the lender has the right to foreclose on the property. The speaker emphasizes the phrase "if you don't pay, you don't stay," highlighting that homeowners retain their property only if they meet their payment obligations. It is important to note that a deed of trust is distinct from a deed, which represents legal title to the property.
