Finance
Alaska is considered a 'lien theory' state, which means:
AThe lender holds title to the property until the mortgage is paid off
BThe borrower retains title while the lender holds a lien as security✓ Correct
CBoth lender and borrower share title equally
DTitle is held by a trustee until the loan is satisfied
Explanation
In a lien theory state like Alaska, the borrower retains legal title to the property, and the mortgage creates a lien on the property as security for the loan. The lender does not hold title; they hold the right to foreclose if the borrower defaults.
Related Alaska Finance Questions
- What is the maximum conforming loan limit and how does it apply in Alaska?
- A 'non-recourse' loan in Alaska real estate means:
- A buyer in Alaska uses an FHA loan and makes a down payment of 3.5% on a $280,000 home. What is the amount of the down payment?
- In Alaska, the 'Alaska Housing Finance Corporation First Home Program' typically offers:
- A 'graduated payment mortgage' (GPM) in Alaska is characterized by:
- An Alaska borrower with a $200,000 FHA loan pays an upfront mortgage insurance premium (UFMIP) of 1.75%. The UFMIP is:
- The 'Alaska Housing Finance Corporation' (AHFC) provides which of the following services?
- A 'blanket mortgage' covers:
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →