Escrow & Title
What is an 'adjustable-rate mortgage note' and how does it relate to the deed of trust or mortgage in Illinois?
AThey are the same document
BThe promissory note is the borrower's promise to repay; the mortgage (or deed of trust) secures the note by pledging the property as collateral✓ Correct
CThe adjustable-rate note is the mortgage; the deed is the promissory note
DIn Illinois, only one document is needed for a mortgage transaction
Explanation
In any mortgage transaction, two key documents exist: the promissory note (the borrower's written promise to repay under specified terms) and the mortgage or deed of trust (the security instrument that pledges the property as collateral). The note is personal to the borrower; the mortgage creates the lien on the property. If the borrower defaults on the note, the lender can enforce the mortgage through foreclosure.
Related Illinois Escrow & Title Questions
- Which type of lien takes priority over all other liens on a property, regardless of when it was recorded?
- In Illinois, a deed must be recorded to provide constructive notice. If an unrecorded deed exists and the property is subsequently sold to a bona fide purchaser for value, who has priority under Illinois recording law?
- Title insurance that protects the lender's interest in the mortgaged property is called:
- A lis pendens recorded against a property notifies the public that:
- In Illinois, 'constructive notice' of an interest in real property is provided by:
- In Illinois, who typically prepares the deed in a residential real estate transaction?
- The 'chain of title' refers to:
- In a quiet title action in Illinois, a property owner goes to court to:
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