When a deed of trust is recorded, bare title is conveyed by the
borrower to the trustee
When a deed of trust is foreclosed, title is conveyed by the
trustee to the purchaser at foreclosure
Which of the following clauses would be found in a deed of trust but not in a mortgage?
A power of Sale clause
If the trustee should die or be dissolved before the debt secured by a deed of trust is paid off, a successor may be named by
the beneficiary
Comparing a deed of trust to a mortgage, which of the following would be unique to the deed of trust?
Power of Sale
The period of equitable redemption given to a borrower
1. begins when the loan goes into default
2. ends when the property is sold at foreclosure
When the amount received from a foreclosure sale is insufficient to pay off the mortgage loan and the other expenses of the sale, the lender may sometimes secure an
deficiency judgement
The period of time set by state law, during which the mortgagor may redeem the property is known as the period of
statutory redemption
A borrower who feels mistreated by a power of sale foreclosure can
appeal the issue to the courts
By voluntarily giving the lender a deed in lieu of foreclosure, a delinquent borrower might avoid
foreclosure proceedings, possible deficiency judgements
A document that for all intents and purposes is a mortgage although not labeled one, would most likely be an
deed as security
The borrower under a deed of trust is
the grantor
The lender under a deed of trust is the
beneficiary
Evidence of the amount and terms of a borrower's debt to a lender is provided by means of a
promissory note
A promissory note that fails to state that it is to be secured by a mortgage or deed of trust is
a personal obligation of the borrower
an unsecured obligation of the borrower
Should a borrower fail to make payments when due, the lender may demand immediate payment of the entire balance under the terms of
acceleration clause
At the time of orgination, a mortgage creates a lien on the mortgaged property in states that subscribe to
the lien theory
The clause that gives the lender the right to call in the note if the mortgaged property is sold or otherwise conveyed by the borrower is known as
the due on sale clause, the alienation clause
Who may be held responsible for mortgage loan repayment when a loan is assumed as part of a real estate sale?
purchaser and seller
When a loan is assumed
the seller can be relieved of liability by novation
the buyer should verify the loan balance with the lender