When comparing a mortgage and a deed of trust, which one must be foreclosed through the courts?

In real estate financing, a mortgage is a legal instrument that secures a loan by using the property as collateral. If the borrower defaults on the loan, the lender may initiate foreclosure proceedings to reclaim the property. This process typically requires going through the courts, as the mortgage document establishes a lien against the property, necessitating a judicial process to enforce the lender's rights and to notify the borrower.

On the other hand, a deed of trust involves a three-party agreement among the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee). In the event of default, the trustee can initiate a non-judicial foreclosure process, which does not require court intervention. This makes the foreclosure process generally quicker and less costly compared to a mortgage foreclosure, which is court-based.

Understanding these distinctions helps clarify why the mortgage must be foreclosed through the courts, while a deed of trust does not follow the same procedure.