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A deed of trust is a legal security instrument where a borrower pledges real estate as collateral for a loan. Essentially, when someone borrows money to purchase a house, they agree that if they fail to repay, the lender can foreclose on the property. This means that if the borrower does not make the required payments, they risk losing their home, encapsulated in 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; a deed represents legal title to the property.
