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CA Trust Deed Investments:
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A Deed of Trust

A deed of trust is similar to a mortgage in that it is a signed agreement that makes it possible for a borrower to purchase a home. Unlike a mortgage, however, a third party holds the trust deed during the loan-repayment period. The borrower uses the title to his or her home as security for the incurred debt. When the loan is repaid, the title is transferred back to the borrower.