Loanfactz Definitions

Deed of Trust

Some states use a Deed of Trust document instead of a * mortgage document. Like a mortgage, a Deed of Trust uses property as security for repayment of a loan. A Deed of Trust document gives a lender the right to a * foreclosure on a piece of property if the borrower * defaults on the loan.

Glossary For This Page
(In Alphabetical Order)

* Default
Failure to perform a legal obligation; a default includes failure to make the payments on a financial obligation, but may also be a failure to perform some action or service that is non monetary (not relating to money).

* Foreclosure
A legal action that terminates all ownership rights in a home when the homebuyer fails to make the mortgage payments or is otherwise in default under the terms of the mortgage.

* Lien
A claim or charge on property for payment of some debt. With respect to a mortgage, it is the right of the lender to take the title to your property if you do not make the payments due on the mortgage.

* Mortgage
A mortgage is a legal document you sign to show that you have granted the lender a * lien on your property as security for repayment of a loan, giving the lender the right to take your property if you default on the terms of the loan. Some states call it a deed of trust instead of a mortgage.

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