Property Ownership

In Minnesota, what is the difference between a 'deed of trust' and a mortgage?

AThey are identical in Minnesota
BA deed of trust involves three parties (trustor, trustee, beneficiary); a mortgage involves two parties (mortgagor, mortgagee)✓ Correct
CA deed of trust is only used in commercial transactions
DA mortgage always requires court foreclosure; a deed of trust does not

Explanation

A deed of trust involves three parties: the borrower (trustor) who conveys title to a neutral trustee who holds it for the lender (beneficiary). In a mortgage, the borrower retains title and gives the lender a lien.

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