Trust deed investments offer high returns with low risk. They are similar to conventional mortgages. The main difference is that mortgage arrangements involve just two parties (the borrower and the lender) trust deeds stretch to three: for a trustee is now added to borrower and lender. The trustee is simply a third party who holds legal title to the property in question on behalf of the lender until the loan is paid in full. In the event of non-accomplishment by borrower, the lender can take possession of the property. First trust deeds are simply trust deeds recorded first and take priority over others therefore second and subsequent trust deeds are more risky investment options.
