Lien Theory Vs Title Theory And Deed Of Trust

Question 1

An instrument for the debt that is your personal promise to pay that is not recorded is called

Answer 1

A note or promissory note

Question 2

A pledge of real property as security for a promissory note is called

Answer 2

A mortgage

Question 3

Which party in a mortgage is the borrower?

Answer 3

Mortgagor

Question 4

Which party in a mortgage is the lender?

Answer 4

Mortgagee

Question 5

In which theory state does the buyer receive the title at closing and the lender has a lien when a mortgage loan is used for the purchase of real property?

Answer 5

Lien theory state

Question 6

In which theory state, does the lender receive the title and hold it until the lien is satisfied or paid off at closing?

Answer 6

Title theory state

Question 7

What will some states use instead of a traditional mortgage?

Answer 7

Deed of trust

Question 8

What clause is contained in a deed of trust that allows for a quick foreclosure, that is preferred by lenders?

Answer 8

“Power of sale” cause

Question 9

What are the three parties involved in a deed of trust?

Answer 9

The borrower (trustor)
The lender (beneficiary)
The trustee