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In this segment of the North Carolina real estate show, the host defines a deed of trust as a security instrument where a borrower pledges real estate to secure repayment of a promissory note. In simpler terms, it means that when someone borrows money to buy a house, they agree that if they fail to repay, the lender can foreclose and reclaim the property. The host emphasizes the concept "if you don’t pay, you don’t stay," highlighting that home retention is contingent on making payments. Additionally, the video clarifies that a deed of trust is not the same as a deed, as a deed pertains to legal title of the property.
