Trust Deeds work the same way as home mortgages, acting as a loan with a lien on the home until the loan is paid in full. Trust Deeds are slightly different then mortgages and each state differs on if they use mortgages or Trust Deeds.
Trust Deeds, also referred to as Deeds of Trust, are sometimes preferred over mortgages since they last for only a few years instead of decades like most mortgages. Trust Deeds also require three entities where mortgages need two, and rely on a non-judiciary foreclosure method which eliminates the need of the courts. The three parties needed for a Deed of Trust are the Trustee, Trustor, and Beneficiary.