mortgage vs deed of trust vs contract for deed

[Haitham Elbedawy]

Hi BP community

  What are the differences between a note secured by mortgage, deed of trust, contract for deed, and land contract? is there pros and cons for each type?

[David Dachtera]

@Haitham Elbedawy,

Short answers ...

1. A mortgage is a document which attaches the home loan to a property by way of a lien in judicial foreclosure states.

2. A Deed of Trust is how home loans are secured in non-judicial foreclosure states.

3. Contract for Deed is pretty much what the name says: the buyer will acquire the deed through fulfilling certain conditions, but does not receive title until then.

4. Land contract is pretty much the same as contract for deed.

As Tim suggested, Google is your friend.