What is the primary distinction between a mortgage and a deed of trust?

A mortgage and a deed of trust serve the same economic function — securing a loan with real property as collateral — but use different legal structures. A mortgage is a two-party agreement: the borrower (mortgagor) pledges the property to the lender (mortgagee) as security. If default occurs, the lender must go through judicial foreclosure (a court proceeding), which can take months to years. A deed of trust adds a third party, a trustee (often a title company), who holds title to the property as security on behalf of the lender (beneficiary). If the borrower (trustor) defaults, the trustee can conduct a non-judicial foreclosure outside court, typically a faster process. Which is used depends on state law: some states use mortgages, some use deeds of trust, and some allow both.