Mortgage Flashcards
1
Q
What exactly is a mortgage?
A
A pledge of property to the lender as security of payment of the debt. The mortgage is the borrower giving the pledge to the lender.
2
Q
What is a promissory note?
A
3
Q
What is lien theory?
A
Real property is pledged to the lending institution, which has a lien on the real property.
4
Q
What is the title theory?
A
Borrower conveys legal title to the trustee borrower is the trustor the bank is the beneficiary.
