What Is Deed of Trust?

A deed of trust is a legal document that secures your mortgage loan by placing title to your property in the hands of a neutral third-party trustee until you repay the debt in full. Used in roughly 30 states as an alternative to a traditional mortgage document, it involves three parties: you (the borrower), your lender, and the trustee.

For example, if you buy a $450,000 home in Texas with a $360,000 loan, a deed of trust is recorded with the county naming a trustee who holds legal title. You keep full possession and use of the home. Once you pay off the loan, the trustee transfers clear title back to you. If you default, the trustee can initiate a non-judicial foreclosure, which typically takes 60–90 days — significantly faster than the 6–12 months common in judicial foreclosure states that use traditional mortgages.

Key Facts

• Three parties: Borrower (trustor), lender (beneficiary), and neutral trustee
• Used in ~30 states: Including Texas, California, Colorado, Virginia, and Arizona
• Non-judicial foreclosure: Allows faster foreclosure (often 60–90 days) without going through court
• Reconveyance: When the loan is paid off, the trustee files a deed of reconveyance returning full title to you
• Recorded publicly: Filed with the county recorder’s office, creating a public lien on the property

Frequently Asked Questions

What is the difference between a deed of trust and a mortgage?

A mortgage involves two parties — borrower and lender — and typically requires a judicial foreclosure through the court system. A deed of trust adds a neutral trustee and allows non-judicial foreclosure, which is faster and less expensive for the lender. Your state’s laws determine which document is used.

Do I still own my home with a deed of trust?

Yes. You retain full possession, use, and equitable ownership of your home. The trustee holds only bare legal title as security for the loan. Once you repay the mortgage in full, the trustee reconveys full legal title back to you.