What is one key benefit of using a deed of trust instead of a traditional mortgage?

One key benefit of using a deed of trust instead of a traditional mortgage is the involvement of a trustee for greater security. In a deed of trust, there is a third-party trustee who holds the legal title to the property until the borrower pays off the debt. This arrangement provides an additional level of security for both the lender and the borrower.

If the borrower defaults on the loan, the trustee has the authority to initiate a non-judicial foreclosure process, which can be faster and less costly than a traditional judicial foreclosure that may be required with a mortgage. This trustee involvement not only ensures that the interests of both parties are maintained but also streamlines the process of resolving defaults, making it a beneficial option for lenders seeking efficient recovery of their investment.

The other options do not accurately represent the advantages of a deed of trust. Reduced interest rates, for example, are determined by market conditions and borrower creditworthiness rather than the choice between a deed of trust and a mortgage. Immediate transfer of ownership is not a feature associated with deeds of trust; instead, it typically retains ownership until the debt is paid in full. Closing costs occur with both financing options, so the claim of having no need for closing costs is misleading.