FAQ
Deed of Trust vs. Mortgage: What Colorado Borrowers Are Signing
Colorado uses a Deed of Trust (not a mortgage) to secure a home loan. The distinction matters legally but borrowers colloquially call both a 'mortgage.' The Deed of Trust names a trustee who holds legal title until the loan is repaid.
Details
The Full Answer
- Colorado is a Deed of Trust state (not a mortgage state)
- Three parties: borrower (trustor), lender (beneficiary), trustee (often the title company)
- Trustee holds bare legal title as security
- Non-judicial foreclosure is available in Colorado (faster than mortgage state foreclosure)
- Deed of Reconveyance releases the lien when the loan is paid off
CTC's Role
How CTC Processing Handles This
The Deed of Trust is recorded with the county clerk and recorder at closing. CTC Processing ensures the Deed of Trust is recorded correctly and that the final title policy reflects the lien position correctly.
Have more questions?
CTC Processing works with Colorado loan officers. Call 970-222-2615 or email ctcprocessingllc@gmail.com.
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