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A deed of trust is a security instrument where a borrower pledges real estate as collateral for a promissory note, meaning they agree to repay borrowed money to the lender. If the borrower fails to make payments, the lender can foreclose on the property. Essentially, this means that if payments are not made, the borrower risks losing the house. This concept is often summarized by the phrase, "if you don’t pay, you don’t stay." It's important to note that a deed of trust is different from a deed; while a deed conveys legal title to the property, a deed of trust serves as a security for the loan.
