06/24/2026
If you want to invest in real estate, one of your key considerations should be the state where the property is located and the mortgage regulations followed by that state. With this knowledge, you will know how to recover your money if the borrower defaults on the loan.
Both trust deeds and mortgages secure loan repayment by ensuring that the lenders have a legal right to acquire the property in question if the borrower is unable to pay their debt. If a borrower defaults and you, as the lender, have a first position lien, you have the right to foreclose the property and sell it. Essentially, borrowers use trust deed documents and mortgages, to ensure they get back their lent money.
Understanding how these structures work can help investors make more informed decisions when evaluating real estate opportunities.
Have questions about real estate financing or lending structures?
Contact Fidelity Mortgage Lenders at (800) 752-9533 or visit fidelitylenders.com.