California · Chapter 28 of 59

Mortgages, Deeds of Trust, and Promissory Notes

California uses trust deeds not mortgages. Three parties, power of sale, non-judicial vs. judicial foreclosure.

35-minute read · Built for the DRE Salesperson Exam

trust deedmortgagepromissory notetrustortrusteebeneficiarypower of salenon-judicial foreclosurejudicial foreclosuredeficiency judgmentreinstatement periodredemption period

California Uses Trust Deeds, Not Mortgages

This is one of the most critical California-specific topics on the exam. California almost exclusively uses TRUST DEEDS (deeds of trust) to secure real estate loans, not mortgages. The key difference: mortgages involve two parties; trust deeds involve THREE parties. The distinction affects the foreclosure process.

Civil Code §2924

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