Trust Deeds / Secured Lending

Deeds of Trust and Secured Lending

Trust deeds or secured lending is the practice of forming two different titles for a property, the legal title and the equitable title. When financing is secured for a home, the buyer takes control of the equitable title and the legal title is transferred to a trustee or neutral third party. Once the loan is paid off, the owner then takes possession of the legal title and officially owns the house. If the loan is not paid off or is defaulted on, the financing company then has the option to take possession of the legal title.