Finance
A Florida mortgage uses a 'deed of trust' rather than a traditional mortgage. The primary difference is that a deed of trust involves:
AA higher interest rate since more parties are involved
BThree parties: borrower (trustor), trustee, and lender (beneficiary)✓ Correct
CThe property being held in trust by the lender until the loan is paid
DGovernment-backed insurance on the loan
Explanation
A deed of trust involves three parties: (1) the trustor (borrower) who conveys title, (2) the trustee (a neutral third party) who holds title, and (3) the beneficiary (lender) who holds the promissory note. Florida primarily uses traditional mortgages (two parties), but deeds of trust are used in other states.
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