Deed of Trust
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A deed of trust is a security instrument used in some states that involves a trustee holding title until the loan is repaid.
What Deed of Trust means
It functions like a mortgage but adds a third party, the trustee, who can handle a non-judicial foreclosure. Florida primarily uses mortgages rather than deeds of trust.
Florida example
A borrower relocating from a deed-of-trust state to Florida will sign a mortgage instead. This means any foreclosure here goes through the courts. The practical effect is a longer foreclosure timeline than in trustee states.
Securing the loan
A deed of trust is a document that secures your loan with the property, similar to a mortgage. It involves you, the lender, and a neutral third party called a trustee who holds legal title until the loan is paid.
Some states use a deed of trust while others use a mortgage. Florida primarily uses a mortgage.
Why it matters
Whether your loan uses a deed of trust or a mortgage affects how foreclosure works if payments stop. In Florida, the mortgage and a judicial process apply.
We explain your loan documents in plain terms. Reach out and we will walk you through what you are signing.