Mortgages and Deeds of Trust

Question 1

Mortgage

Answer 1

document that conveys a property interest in real property as security for an obligation

Question 2

Deed of Trust

Answer 2

a writing grants an interest in property as security for an obligation, but the deed goes to a third party as trustee

Question 3

Purchase Money Mortgage

Answer 3

the borrower uses the loan in order to purchase the mortgaged property

Question 4

Transfer of Mortgaged Property

Answer 4

• The original mortgagor always remains personally liable on the mortgage
• Assumption of the Mortgage: the buyer also becomes personally liable