Finance
Arizona is classified as which type of mortgage state?
ATitle theory state
BLien theory state✓ Correct
CIntermediate theory state
DDeed theory state
Explanation
Arizona is a lien theory state. The borrower retains title to the property, and the mortgage or deed of trust creates a lien against the property as security for the loan.
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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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