Escrow & Title

Which of the following BEST describes a 'deed of trust' compared to a mortgage?

AThey are identical in all respects
BA deed of trust involves three parties (trustor, trustee, beneficiary) while a mortgage involves two✓ Correct
CA deed of trust is used only for commercial properties
DA deed of trust requires court action to foreclose

Explanation

A deed of trust involves the borrower (trustor), a neutral third-party trustee, and the lender (beneficiary). Connecticut primarily uses mortgages (two-party instruments) rather than deeds of trust.

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