Finance
A deed of trust differs from a mortgage primarily because:
AA deed of trust requires court action to foreclose
BA deed of trust involves three parties (borrower, trustee, beneficiary) and allows non-judicial foreclosure✓ Correct
CA mortgage involves three parties
DA deed of trust is used only for commercial properties
Explanation
In a deed of trust, the borrower (trustor) conveys title to a neutral third-party trustee to hold on behalf of the lender (beneficiary). Upon default, the trustee may foreclose non-judicially (by power of sale), making it faster than a judicial mortgage foreclosure.
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