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.
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.
Verify the details for your own situation against these government and agency sources: CFPB Owning a Home guide and HUD homebuyer resources.