What is the difference between a mortgage and a deed of trust?

A mortgage involves two parties: the borrower, called the mortgagor, and the lender, called the mortgagee. The borrower pledges the property as collateral and retains title. A deed of trust involves three parties: the borrower or trustor, the lender or beneficiary, and a neutral trustee who holds bare legal title until the loan is paid. The key practical difference is foreclosure method: mortgage states require judicial foreclosure through the courts, while deed of trust states allow faster non-judicial foreclosure through a power of sale clause.