what is included in a trust deed 
a deed of trust will include the same type of information stated in a mortgage document such as in addition a trust deed will also include a power of sale clause that gives the trustee the right to sell the property if the borrower defaults foreclosures and trust deedsmortgages and trust deeds have different foreclosure processes a judicial foreclosure is a court supervised process enforced when the lender files a lawsuit against the borrower for defaulting on a mortgage the process is time consuming and expensive also if the foreclosed property auction doesn t bring in enough money to pay off the promissory note the lender may file a deficiency judgment against the borrower suing for the balance however even after the property is sold the borrower has the right of redemption they may repay the lender within a set amount of time and acquire the property title in contrast a trust deed lets the lender commence a faster and less expensive non judicial foreclosure bypassing the court system and adhering to the procedures outlined in the trust deed and state law if the borrower does not make the loan current the property is put up for auction through a trustee s sale the title transfers from the trustee to the new owner through the trustee s deed after the sale when there are no bidders at the trustee sale the property reverts to the lender through a trustee s deed once the property is sold the borrower has no right of redemption furthermore a trustee has the responsibility of paying the proceeds from the sale to the borrower and lender after the sale is finalized the trustee will pay the lender the amount left over on the debt and pay the borrower anything that surpasses that amount thereby allowing the lender to purchase the property pros and cons of investing in trust deedsinvestors who are searching for juicy yields sometimes turn to the real estate sector in particular trust deeds in trust deed investing the investor lends money to a developer working on a real estate project the investor s name goes on the deed of trust as the lender the investor collects interest on the loan when the project is finished the principal is returned to the investor in full a trust deed broker usually facilitates the deal high yielding income streamportfolio diversificationilliquidityno capital appreciation