Which statement about a deed of trust is correct?

• A. A mortgage creates a lien on the property.
• B. A deed of trust requires judicial foreclosure in all states.
• C. A deed of trust uses a trustee to allow non-judicial foreclosure in many states.
• D. It does not involve a promissory note.

Answer: (C)

The main idea is that a deed of trust involves three parties—the borrower, the lender, and a trustee—and uses the trustee’s power of sale to allow non-judicial foreclosure in many states. When the borrower defaults, the trustee can sell the property without going through court action, which makes the foreclosure process faster and typically cheaper. This non-judicial path is a hallmark of deeds of trust in jurisdictions that recognize it, contrasting with the more court-driven foreclosure often associated with mortgages.

This is why the correct statement fits best: a deed of trust uses a trustee to enable non-judicial foreclosure in many states. The other options don’t fit as well: a mortgage does create a lien, but that describes a different instrument; not all states require judicial foreclosure for deeds of trust—many allow non-judicial foreclosure; and the deed of trust is tied to the promissory note, so it does involve the note.