FinanceQuestion 70 of 120
Texas commonly uses a 'deed of trust' rather than a traditional mortgage. In a deed of trust, the neutral third party who holds legal title until the loan is repaid is the:
a.Trustee
b.Trustor only
c.Beneficiary
d.Grantee
Explanation
In a deed of trust, the borrower (trustor) conveys title to a trustee who holds it for the lender (beneficiary) until the debt is paid. This structure allows a non-judicial foreclosure process if the borrower defaults.
Practice all 120 questions free — no signup required.
Related questions on this topic
- In a typical mortgage loan, the document that serves as the borrower's written promise to repay the debt is the:
- A loan feature that lets the lender declare the entire remaining balance due upon borrower default is a(n):
- A 'due-on-sale' (alienation) clause in a mortgage generally:
- In an amortized loan, the early payments are applied:
- The four components commonly abbreviated as 'PITI' in a monthly housing payment are:
- Private mortgage insurance (PMI) on a conventional loan is generally required when the borrower's down payment is:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against Texas Real Estate Sales Agent Licensing Exam · How we review