# Deed of trust

> A deed of trust secures a home loan by giving a neutral trustee the power to sell the property if you default. How it differs from a mortgage document.

URL: https://mortgage-math-us.com/glossary/deed-of-trust/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**A deed of trust** is the document that makes your home security for a loan in many states, used in place of a mortgage document. It involves three parties — you, the lender and a neutral trustee — and usually gives the trustee a power of sale, so the home can be sold if you don’t repay.

## Three parties instead of two

*Who’s who in each security document*

| Role | Mortgage | Deed of trust |
|---|---|---|
| You, the borrower | Mortgagor | Trustor |
| The lender | Mortgagee | Beneficiary |
| Neutral third party | None | Trustee, often a title company or attorney |

Either way, the debt itself is in the [promissory note](https://mortgage-math-us.com/glossary/promissory-note/); the deed of trust or mortgage is what creates the [lien](https://mortgage-math-us.com/glossary/lien/) on the home. Both are signed at [closing](https://mortgage-math-us.com/glossary/closing/) and recorded in the county land records.

## Why the difference matters

**Foreclosure.** A power-of-sale clause lets the lender foreclose without going to court in states that allow non-judicial [foreclosure](https://mortgage-math-us.com/glossary/foreclosure/), following notice and sale steps set by state law. A mortgage can carry a power of sale too, but in many states that use mortgages, foreclosure goes through the courts. Which document your state uses, and the procedures, are matters of state law.

**Payoff.** When the loan is repaid, the trustee issues a deed of reconveyance releasing the home, and it is recorded. Check your county records a few weeks after payoff to confirm it was filed. The [step-by-step buying guide](https://mortgage-math-us.com/first-time-buyers/step-by-step/) shows where this document fits in a purchase.

## Sources

- [CFPB: What is a security interest?](https://www.consumerfinance.gov/ask-cfpb/my-mortgage-closing-forms-mention-a-security-interest-what-is-a-security-interest-en-1999/)
- [CFPB: How does foreclosure work?](https://www.consumerfinance.gov/ask-cfpb/how-does-foreclosure-work-en-287/)

_General information, not financial advice._