Deed of Trust
Direct definition
A security instrument used in many states to secure a mortgage, involving a trustee in addition to lender and borrower.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
In deed-of-trust states, the borrower conveys legal title to a neutral trustee until the loan is repaid. Foreclosure typically proceeds non-judicially.
Why it matters
The security instrument affects how foreclosure works if the loan defaults.
Where you may see it
- Deed of trust
- Closing documents
- County records
A real-world example
In Texas, your mortgage is documented via a deed of trust; the trustee handles the foreclosure process if you default.
Educational and illustrative only
A common misunderstanding
A deed of trust doesn't mean a trustee owns your home — it holds legal title only as security until the loan is repaid.
Ask Vabasso AI
This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026