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A deed of trust is a legal security instrument in which a borrower pledges real estate to secure repayment of a loan under a promissory note. Essentially, when someone borrows money to purchase a house, they agree that if they fail to repay, the lender can foreclose on the property. The phrase "if you don’t pay, you don’t stay" emphasizes that homeowners must make payments to retain ownership. It’s important to note that a deed of trust is different from a deed; the former secures the loan while the latter represents legal title to the property.
