Deeds of trust are one of the two ways that loans on real estate are secured.
The laws of each state determine whether to use a deed of trust or a mortgage.
There are three parties to a deed of trust: the borrower (trustor), the lender (beneficiary), and the trustee.
Assignment of rents provides added security for the lender on the note.
Typically used when financing rental property, it allows the lender to collect rent, income, and/or other profits from the property if the borrower defaults.