Finance
In California, a deed of trust differs from a mortgage primarily because it:
ARequires judicial foreclosure
BInvolves three parties and allows non-judicial foreclosure✓ Correct
CDoes not create a lien on the property
DCan only be used for commercial properties
Explanation
A deed of trust involves three parties: borrower (trustor), lender (beneficiary), and a neutral third party (trustee). This structure allows for non-judicial (trustee's sale) foreclosure, which is faster and less costly than a court proceeding.
Related California Finance Questions
- Which of the following is NOT a qualifying factor used by lenders when underwriting a residential mortgage loan?
- What does 'points' mean in mortgage financing?
- A 'blanket mortgage' is most commonly used in which situation?
- A 'hard money loan' is typically characterized by:
- What is a 'due-on-sale' clause in a mortgage?
- An adjustable-rate mortgage (ARM) is best described as:
- Under the Community Reinvestment Act (CRA), banks are required to:
- Which of the following is an example of 'predatory lending'?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →