First Trust Deed

by Wilshire Finance Partners

A lien on real property that is superior to any other lien of record. A common way to structure real estate purchases, where the title to a property is held in trust until the loan for the property is paid. A legal document pledging collateral for a loan that has first priority over all other claims against the property except taxes and bonded indebtedness. That trust deed superior to any other; this is significant because, in the event of a foreclosure, liens are paid according to their position. A first lien is superior to a second lien and so forth. Given the relative security of a first trust deed, its value as a solid investment becomes apparent.