Escrow & Title
In Michigan, a 'deed of trust' differs from a traditional mortgage in that:
AMichigan uses only traditional mortgages
BA deed of trust involves three parties: borrower, trustee, and lender; Michigan primarily uses two-party mortgages but deeds of trust are sometimes used✓ Correct
CA deed of trust is used only for land contracts
DA deed of trust requires court foreclosure
Explanation
A deed of trust involves three parties: borrower (trustor) conveys bare legal title to a trustee to hold as security for the lender (beneficiary). Michigan primarily uses two-party mortgages (borrower/lender), though deeds of trust exist in some contexts.
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