An all-inclusive deed of trust is

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An all-inclusive deed of trust describes a wraparound financing arrangement where a new loan is created to cover the existing debt on the property. The key effect is that the old lien stays in place and retains its senior priority, while the new loan is recorded to secure the overall deal but sits in a subordinate position to that existing lien. In practice, the borrower makes payments on the new loan, and those funds are used to service the old loan as well, with the old lender still holding the senior lien. Because the new financing is subordinate to the existing mortgage, this is considered a junior deed of trust. This structure lets a borrower obtain additional funds without paying off the old loan, but it also means the new lender’s security is behind the existing lender in foreclosure priority.