Deed of Trust

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.

Related Mortgage Terms