Posted by David Butler on May 30, 2007 at 09:48:20:
Hello Peggy,
The two are quite different. A warranty deed conveys title to property. A deed of trust (as does a mortgage), is a security instrument made by the owner of the property (i.e. the title holder, who holds the warranty deed in his name, in this case), that conveys a secured interest (a lien) in that property to a lender; or alternatively, to a seller who has agreed to carry back all, or part of the purchase money financing for the buyer (Payor on the note).
To give someone a secured lien interest in a property by way of deed of trust or mortgage, you have to own that property - meaning you must hold title, by way of warranty deed (or grant deed in states that use that form of title instrument).
The secured party (or his trustee if a deed of trust) holds the security instrument (deed of trust, or mortgage); the property owner holds the title instrument (warranty deed, or grant deed).
Hope that helps clear things up for you, and…
Have Fun For A Living
David P. Butler