What is one main feature of a deed of trust compared to a mortgage?

The main feature of a deed of trust compared to a mortgage is that it often involves a third-party trustee for title transfer. In a deed of trust, the borrower (trustor) conveys the title to the property to a trustee, who holds it as security for the loan extended by the lender (beneficiary). This arrangement allows the trustee to act on behalf of the lender, managing the process if the borrower defaults on the loan. The involvement of a third-party trustee simplifies the foreclosure process, as the trustee can sell the property without having to go through the court system, which is typically required in mortgaging scenarios.

This feature distinguishes the deed of trust from traditional mortgage agreements, where the borrower retains more direct control over the title and the lender typically does not appoint a third-party trustee. The other options do not accurately reflect distinguishing characteristics of a deed of trust. Option regarding documentation may not necessarily be true as both may require similar documentation. The ability to modify a deed of trust is not limited in the same way as suggested. Lastly, the claim that it is only applicable for commercial properties is also inaccurate, as deeds of trust can be used for both residential and commercial real estate transactions.