What is a Mortgage Deed?

Signing a mortgage or deed of trust gives your lender a security interest.
Image Credit: LDProd/iStock/Getty Images

A mortgage or deed of trust ensures that you'll follow through with your promise to repay a home loan. If you don't, the lender can enforce the lien created by mortgage or trust deed documents.

Document Distinctions

A promissory note and the mortgage or trust deed are the lender's most important documents to secure repayment. The note is a promise-to-pay document that works hand-in-hand with the security instrument -- a mortgage or trust deed -- depending on the state you live in. Mortgages and trust deeds create claims, or liens, against your home's title, giving lenders a right to sell the home if you don't repay your debt.

Parties and Foreclosures

Mortgage and trust deeds pledge your property as collateral for a home loan in different ways. A mortgage agreement involves the lender, or mortgagee, and you, the borrower, or mortgagor. A deed of trust involves a third-party -- the trustee -- which holds onto your home's title until you pay off the loan. Mortgage foreclosures are also handled differently from trust deed foreclosures.