A deed of trust is a three-party arrangement to secure a loan with real property.

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A deed of trust involves three parties: the borrower (also known as the trustor), the lender (also known as the beneficiary), and a third-party trustee who holds the legal title to the property until the loan is fully paid off. The property serves as collateral for the loan, and if the borrower defaults, the trustee can initiate foreclosure proceedings on behalf of the lender.

A Deed of Trust Is a Three-Party Arrangement to Secure