The deed to real property which serves the same purpose as a mortgage but instead of two parties, three parties are involved. The third party holds title for the benefit of the Lender. The Lender is called the “Beneficiary”. The Borrower is called the “Trustor”. When a loan is made, the Borrower conveys title to a third party called the “Trustee” who holds the title for the benefit of the Lender although the instrument itself may remain in the Lender’s possession.
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