Property OwnershipIntermediateAlaska Exam

In Alaska, the difference between a 'mortgage' and a 'deed of trust' in practice often means that foreclosure through a deed of trust is:

AMore expensive and time-consuming than judicial foreclosure, as a general rule
BFaster and less expensive through the non-judicial (trustee's sale) processCorrect
COnly available for commercial properties
DUnavailable in Alaska

Why Faster and less expensive through the non-judicial (trustee's sale) process Is Correct

Answer B: Faster and less expensive through the non-judicial (trustee's sale) process

The primary practical difference is that a deed of trust allows for non-judicial (trustee's sale) foreclosure, which is generally faster and less expensive than judicial foreclosure through the courts. Lenders typically prefer deeds of trust for this reason.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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