Using a deed of trust to purchase real estate or borrow money using your property as collateral, you must have a legitimate trustee as part of the transaction. What exactly is a deed of trust ? A deed of trust is a legal document used in a real estate transaction when the borrower, or purchaser, borrows money for the purchase of property and uses that property as collateral. In most states, a mortgage is what is used to borrow money for the use of buying real estate. However, some states like California and Arizona do use deeds of trust. If you are not sure if your state uses mortgages, trusts of deeds, or both, contact any real estate broker in your area. A deed of trust always involves three parties: the borrower, the lender, and the trustee. The borrower is called the trustor and the lender is the beneficiary. The trustee can be an individual or a business. Their role is to hold the title to the property until the trustor has paid the loan in full. Once the loan has been paid off, ...
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