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Mortgage States and Deed of Trust States
Last updated: December 4, 2024
What is the difference between a Mortgage state and a Deed of Trust state?
The difference between a Mortgage state and a Deed of Trust state relates to how home loans are secured and how foreclosure is handled.
| Mortgage | Deed of Trust | |
|---|---|---|
| Number of Parties | 2 (Mortgagor, Mortgagee) | 3 (Trustor, Beneficiary, Trustee) |
| Foreclosure Type | Judicial foreclosure | Non-judicial foreclosure |
| Time of Foreclosure | Slow | Fast |
| Cost of Foreclosure | Expensive | Inexpensive |
Did you know?... Lenders may offer lower interest rates for loans on subject properties located in Deed of Trust states because the non-judicial foreclosure allows the lender to more cost effectively conduct recourse in the event of borrower default.
What is a Mortgage State?
- Loan Instrument: the lender and borrower use a mortgage to secure the loan. This document pledges the property as collateral for the loan.
- Parties Involved: there are two parties: the borrower (mortgagor) and the lender (mortgagee).
- Foreclosure Process: in a mortgage state, foreclosure typically requires a judicial process. The lender must go to court to foreclose on the property, which can be a longer and more expensive process.
- Judicial Foreclosure: the lender files a lawsuit, and the court oversees the foreclosure process to ensure it is done legally. This can take several months or longer.
What is a Deed of Trust State?
- Loan Instrument: the lender and borrower use a deed of trust to secure the loan. This document also pledges the property as collateral but involves an additional party.
- Parties Involved: there are three parties: the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee) who holds the title in trust until the loan is paid off.
- Foreclosure Process: foreclosure in a deed of trust state is typically handled through a non-judicial process, which is faster and less costly.
- Non-Judicial Foreclosure: the trustee has the authority to sell the property if the borrower defaults, without the need for court involvement. The process can be much quicker than in a mortgage state.
Mortgage or Deed of Trust?
| State | Mortgage State | Deed of Trust State |
|---|---|---|
| Alabama | ā | ā |
| Alaska | ā | ā |
| Arizona | ā | ā |
| Arkansas | ā | ā |
| California | ā | ā |
| Colorado | ā | ā |
| Connecticut | ā | ā |
| Delaware | ā | ā |
| D.C. | ā | ā |
| Florida | ā | ā |
| Georgia | ā | ā |
| Hawaii | ā | ā |
| Idaho | ā | ā |
| Illinois | ā | ā |
| Indiana | ā | ā |
| Iowa | ā | ā |
| Kansas | ā | ā |
| Kentucky | ā | ā |
| Louisiana | ā | ā |
| Maine | ā | ā |
| Maryland | ā | ā |
| Massachusetts | ā | ā |
| Michigan | ā | ā |
| Minnesota | ā | ā |
| Mississippi | ā | ā |
| Missouri | ā | ā |
| Montana | ā | ā |
| Nebraska | ā | ā |
| Nevada | ā | ā |
| New Hampshire | ā | ā |
| New Jersey | ā | ā |
| New Mexico | ā | ā |
| New York | ā | ā |
| North Carolina | ā | ā |
| North Dakota | ā | ā |
| Ohio | ā | ā |
| Oklahoma | ā | ā |
| Oregon | ā | ā |
| Pennsylvania | ā | ā |
| Rhode Island | ā | ā |
| South Carolina | ā | ā |
| South Dakota | ā | ā |
| Tennessee | ā | ā |
| Texas | ā | ā |
| Utah | ā | ā |
| Vermont | ā | ā |
| Virginia | ā | ā |
| Washington | ā | ā |
| West Virginia | ā | ā |
| Wisconsin | ā | ā |
| Wyoming | ā | ā |
Is Alabama a Mortgage State or a Deed of Trust State?
Alabama is a Mortgage state and Deed of Trust state.
Is Alaska a Mortgage State or a Deed of Trust State?
Alaska is a Deed of Trust state.
Is Arizona a Mortgage State or a Deed of Trust State?
Arizona is a Mortgage state and Deed of Trust state.
Is Arkansas a Mortgage State or a Deed of Trust State?
Arkansas is a Mortgage state and Deed of Trust state.
Is California a Mortgage State or a Deed of Trust State?
California is a Deed of Trust state.
Is Colorado a Mortgage State or a Deed of Trust State?
Colorado is a Deed of Trust state.
Is Connecticut a Mortgage State or a Deed of Trust State?
Connecticut is a Mortgage state.
Is Delaware a Mortgage State or a Deed of Trust State?
Delaware is a Mortgage state.
Is Washington DC a Mortgage State or a Deed of Trust State?
Washington DC is a Deed of Trust state.
Is Florida a Mortgage State or a Deed of Trust State?
Florida is a Mortgage state.
Is Georgia a Mortgage State or a Deed of Trust State?
Georgia is a Deed of Trust state.
Is Hawaii a Mortgage State or a Deed of Trust State?
Hawaii is a Mortgage state.
Is Idaho a Mortgage State or a Deed of Trust State?
Idaho is a Deed of Trust state.
Is Illinois a Mortgage State or a Deed of Trust State?
Illinois is a Mortgage state and Deed of Trust state.
Is Indiana a Mortgage State or a Deed of Trust State?
Indiana is a Mortgage state.
Is Iowa a Mortgage State or a Deed of Trust State?
Iowa is a Mortgage state.
Is Kansas a Mortgage State or a Deed of Trust State?
Kansas is a Mortgage state.
Is Kentucky a Mortgage State or a Deed of Trust State?
Kentucky is a Mortgage state and Deed of Trust state.
Is Louisiana a Mortgage State or a Deed of Trust State?
Louisiana is a Mortgage state.
Is Maine a Mortgage State or a Deed of Trust State?
Maine is a Deed of Trust state.
Is Maryland a Mortgage State or a Deed of Trust State?
Maryland is a Mortgage state and Deed of Trust state.
Is Massachusetts a Mortgage State or a Deed of Trust State?
Massachusetts is a Deed of Trust state.
Is Michigan a Mortgage State or a Deed of Trust State?
Michigan is a Mortgage state and Deed of Trust state.
Is Minnesota a Mortgage State or a Deed of Trust State?
Minnesota is a Deed of Trust state.
Is Mississippi a Mortgage State or a Deed of Trust State?
Mississippi is a Deed of Trust state.
Is Missouri a Mortgage State or a Deed of Trust State?
Missouri is a Deed of Trust state.
Is Montana a Mortgage State or a Deed of Trust State?
Montana is a Mortgage state and Deed of Trust state.
Is Nebraska a Mortgage State or a Deed of Trust State?
Nebraska is a Deed of Trust state.
Is Nevada a Mortgage State or a Deed of Trust State?
Nevada is a Deed of Trust state.
Is New Hampshire a Mortgage State or a Deed of Trust State?
New Hampshire is a Deed of Trust state.
Is New Jersey a Mortgage State or a Deed of Trust State?
New Jersey is a Mortgage state.
Is New Mexico a Mortgage State or a Deed of Trust State?
New Mexico is a Deed of Trust state.
Is New York a Mortgage State or a Deed of Trust State?
New York is a Mortgage state.
Is North Carolina a Mortgage State or a Deed of Trust State?
North Carolina is a Deed of Trust state.
Is North Dakota a Mortgage State or a Deed of Trust State?
North Dakota is a Mortgage state.
Is Ohio a Mortgage State or a Deed of Trust State?
Ohio is a Mortgage state.
Is Oklahoma a Mortgage State or a Deed of Trust State?
Oklahoma is a Mortgage state.
Is Oregon a Mortgage State or a Deed of Trust State?
Oregon is a Deed of Trust state.
Is Pennsylvania a Mortgage State or a Deed of Trust State?
Pennsylvania is a Mortgage state.
Is Rhode Island a Mortgage State or a Deed of Trust State?
Rhode Island is a Deed of Trust state.
Is South Carolina a Mortgage State or a Deed of Trust State?
South Carolina is a Mortgage state.
Is South Dakota a Mortgage State or a Deed of Trust State?
South Dakota is a Mortgage state and Deed of Trust state.
Is Tennessee a Mortgage State or a Deed of Trust State?
Tennessee is a Deed of Trust state.
Is Texas a Mortgage State or a Deed of Trust State?
Texas is a Deed of Trust state.
Is Utah a Mortgage State or a Deed of Trust State?
Utah is a Deed of Trust state.
Is Vermont a Mortgage State or a Deed of Trust State?
Vermont is a Mortgage state.
Is Virginia a Mortgage State or a Deed of Trust State?
Virginia is a Deed of Trust state.
Is Washington a Mortgage State or a Deed of Trust State?
Washington is a Deed of Trust state.
Is West Virginia a Mortgage State or a Deed of Trust State?
West Virginia is a Deed of Trust state.
Is Wisconsin a Mortgage State or a Deed of Trust State?
Wisconsin is a Mortgage state.
Is Wyoming a Mortgage State or a Deed of Trust State?
Wyoming is a Deed of Trust state.
