An all-inclusive deed of trust is considered which type of deed of trust?

Study for the California Escrow Exam. Dive into detailed content with flashcards and multiple choice questions, accompanied by explanations and hints. Ensure your success on test day!

An all-inclusive deed of trust is a wraparound financing arrangement where the new loan covers the balance of the existing loan plus any additional funds, but the original loan remains in place. Because the original first mortgage still exists and has priority, the new instrument takes a lien position behind it. In other words, the all-inclusive deed of trust is a junior lien to the first mortgage. It’s not the new first deed because the prior loan keeps its senior status, and it’s not illegal or a new first—it's simply a subordinate (junior) deed of trust that secures both the old debt and the new funds.