This is an agreement between a borrower and a lender wherein the mortgaged property is conveyed to a third neutral party to be utilized as collateral while there is an outstanding mortgage. The third party is usually a title company. In this arrangement, the borrower still holds the equitable title. The lender, on the other hand, holds the legal title.
Deed of Trust
This is an agreement between a borrower and a lender wherein the mortgaged property is conveyed to a third neutral party to be utilized as collateral while there is an outstanding mortgage. The third party is usually a title company. In this arrangement, the borrower still holds the equitable title. The lender, on the other hand, holds the legal title.
