Deed of Trust is the document that is recorded in the public records for the security of your loan, which is used in some states instead of a mortgage where the title is conveyed to a trustee rather than to the borrower.

A deed of trust contains three parties;

• Trustor (borrower)
• Trustee (entity that holds legal title)
• Beneficiary (lender).

The deed of trust is an instrument that identifies any riders regarding such clauses as prepayment penalties, terms of an adjustable rate mortgage, acceleration clause and alienation clauses, original loan amount, legal description of the property being used as security for the mortgage, inception and maturity of the loan, provisions of the mortgage and requirements, late fees, legal procedures and the parties involved in the transaction.