Definition
A legal document used in many states instead of a mortgage that involves three parties: the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee) who holds the property title until the loan is repaid. The trustee has the power to sell the property through a non-judicial foreclosure if the borrower defaults.
Related Mortgage Terms
- Foreclosure
The legal process by which a lender seizes and sells a property when the borrowe...
- Title
The legal right to own, use, and dispose of a property. A title search examines ...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
- Appraisal
A professional assessment of a property's market value conducted by a licensed a...
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