A trust deed (also called a deed of trust) isn’t like the other types of deeds; it’s not used to transfer property. It’s really just a version of a mortgage, that is used in certain states.
In a trust deed, the title to land is transferred to a “trustee”, which is usually a trust or title company that will hold the land as security for a loan. Once the loan has been finished being paid off, the title is then transferred over to the borrower. During this time, the trustee has no power unless the borrower defaults on the loan. If this happens, then the trustee can sell the property without first having to go to court and pay the lender from the money received. In a traditional mortgage, the property is foreclosed judicially in case of default.
Deed of Trust States: Alaska – Mississippi – North Carolina – Arizona – Missouri – Virginia – California – Nevada – Washington DC
Mortgage States: Alabama – Louisiana – North Dakota – Arkansas – Maine – Ohio – Connecticut – Massachusetts – Oregon – Delaware – Michigan – Pennsylvania – Florida – Minnesota – Rhode Island – Hawaii – New Hampshire – South Carolina – Indiana – New Jersey – Vermont – Kansas – New Mexico – Wisconsin – Kentucky – New York
States That Use Both Deed of Trust and Mortgages: Colorado – Montana – Texas – Idaho – Nebraska – Utah – Illinois – Oklahoma – Wyoming – Iowa – Oregon – Washington – Maryland – Tennessee – West Virginia
Security Deed: Georgia
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