When you borrow money to purchase real property, you sign a "promissory note" (typically just called the "Note"). The Note is the document that creates the debt. The debt is usually then secured by the real property that is the subject of the purchase. The documents used to secure the collateral (i.e., the subject real property) is a mortgage or a deed of trust. Almost all lenders currently use a deed of trust; it would be difficult to find a lender who still uses a mortgage.
A mortgage must be foreclosed "judicially," which means the lender must file a lawsuit in court. The judicial foreclosure process can take three to nine months, depending on a variety of factors.
A deed of trust may be foreclosed "non-judicially," which means that the lender does not have to go to court. Instead, the lender merely records a document with the county recorder and sends out some notices. Ninety days later, the lender can conduct a trustee's sale. A trustee's sale is almost always faster and cheaper for the lender than a mortgage. Moreover, if, for some reason, a lender wanted to do a judicial foreclosure, a lender with a deed of trust can elect to foreclose a deed of trust as a mortgage, but a lender holding a mortgage cannot elect to foreclosure a mortgage as a deed of trust. Consequently, almost all lenders use a deed of trust.
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