There are three parties to a deed of trust the TRUSTOR (the borrower) ,The BENEFICIARY (the lender), and the TRUSTEE (a neutral third party).
The trustor makes payments to the beneficiary; the trustee steps in to conduct foreclosure proceedings in case of default.

Make a promise to repay a debt. One person loans money, and the other Signs a promissory note, promising to repay the loan( plus interest, in most cases).

Creates a lien against the property and gives the lender the right to foreclose after default (deed of trust)

A person borrowing money to buy real estate signs a promissory note in the favor of the lender. In addition, the borrower signs a security agreement, such as a deed or mortgage.

The SECURITY AGREEMENT is a contract that makes the real property collateral for the loan. It creates a lien on the property. I f the borrower doesn’t repay as agreed in the promissory note, the security agreement gives the lender the right to foreclose.

An acceleration clause allows the lender to demand payment of the outstanding loan balance for various reasons, including if the buyer defaults on loan payment.

Is a type of acceleration clause that demands payment of the entire balance of the loan upon sale or transfer of title.

(American Land Title Association) A type of title insurance policy issued by title insurance companies which expands the risks normally insured against under the standard type policy to include unrecorded mechanics liens; unrecorded physical easements; facts a physical survey would show; water and mineral rights; and rights of parties in possession, such as tenants and buyers under unrecorded instruments.

A loan to be repaid, interest and principal, by a series of regular payments that are equal or nearly equal, without any special balloon payment prior to maturity. Also called a Level Payments Loan.

An installment payment on a promissory note – usually the final one for discharging the debt – which is significantly larger than the other installment payments provided under the terms of the promissory note.

Failure to fulfill a duty or promise or to discharge an obligation; omission or failure to perform any act.

A straight, non-amortizing loan in which the lender receives only interest during the term of the loan and principal is repaid in a lump sum at maturity.

The percentage of a sum of money charged for its use. Rent or charge paid for use of money, expressed as a percentage per month or year of the sum borrowed.

A signed written instrument acknowledging a debt and promising payment, According to the specified terms and conditions. A promissory note.

This rate determines the amount of interest charged on an annual basis to the borrower. Also called the accrual rate, contract rate or coupon rate.

The charge payable to a lender by a borrower under the terms of the loan agreement if the borrower pays off the outstanding principal balance of the loan prior to its maturity.

The transfer of the title of land from one person to the immediate preceding owner. This instrument of transfer is commonly used to transfer the legal title from the trustee to the trustor (borrower) after a trust deed debt has been paid in full.

The process of placing a document on file with a designated public official for public notice. This public official is usually a county officer known as the County Recorder who designates the fact that a document has been presented for recording by placing a recording stamp upon it indicating the time of day and the date when it was officially placed on file.

Just as with a mortgage this is a legal document by which a borrower pledges certain real property or collateral as guarantee for the repayment of a loan.