Escrow & Title
A Kentucky buyer at closing signs a promissory note and a mortgage. The promissory note is the:
ADocument pledging the property as collateral
BPersonal promise to repay the loan✓ Correct
CDocument transferring title to the lender
DEvidence of homeowners insurance
Explanation
The promissory note is the borrower's personal promise to repay the debt under specified terms. The mortgage is the separate document that pledges the property as collateral for the loan. The note creates personal liability; the mortgage creates a lien on the property.
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