Mortgage or Deed of Trust

Mortgage or Deed of Trust is a 3-page legal document that was released by the U.S. Department of the Interior - Office of Surface Mining, Reclamation and Enforcement and used nation-wide.

FAQ

Q: What is a mortgage?
A: A mortgage is a legal agreement between a borrower and a lender, where the borrower uses their property as collateral to secure a loan.

Q: What is a deed of trust?
A: A deed of trust is a legal document that serves as a security instrument in real estate transactions, similar to a mortgage. It involves three parties: the borrower, the lender, and a third-party trustee.

Q: What is the difference between a mortgage and a deed of trust?
A: The main difference is the involvement of a third-party trustee in a deed of trust. In a mortgage, the lender holds the title until the loan is paid off, while in a deed of trust, the trustee holds the title on behalf of the lender.

Q: Which one is more commonly used, a mortgage or a deed of trust?
A: In some states, mortgages are more commonly used, while in others, deeds of trust are more prevalent. It depends on the local laws and regulations.

Q: Which one should I choose, a mortgage or a deed of trust?
A: The choice between a mortgage and a deed of trust is typically determined by the laws and practices of your state. It is advisable to consult with a real estate attorney or a mortgage professional to understand your options.