Deeds of trust are used in other states instead of mortgages. A Deed of Trust is typically used in combination with a Promissory Note or Mortgage Agreement which sets out the amount and terms of the loan agreement.Complete the "After Recording" and "Prepared By" statements and fill in the name of the county. Some states allow both mortgages and deeds of trust. A main difference is that a mortgage foreclosure proceeding needs to go through the courts. Virtually all mortgages in the US have a "dueonsale" clause to protect the bank from property transfers without their permission. A Deed of Trust is a legal document similar to a home mortgage. It guarantees a real estate transaction between a lender and a borrower. Essentially, both state that the borrower will repay the loan. Both parties must sign the deed in the presence of a notary public.