Escrow & Title
A deed of trust differs from a mortgage in that:
AA deed of trust requires court action for foreclosure; a mortgage does not
BA deed of trust involves three parties (borrower, trustee, and lender); a mortgage involves two parties✓ Correct
CA mortgage is only used for commercial property
DA deed of trust is not recorded in public records
Explanation
A mortgage involves two parties: the mortgagor (borrower) and the mortgagee (lender). A deed of trust involves three parties: the trustor (borrower), the trustee (neutral third party), and the beneficiary (lender). The trustee holds legal title until the loan is repaid.
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