Escrow & Title
When a NH property is sold in a trust deed state using a deed of trust, the trustee holds the legal title until the loan is repaid. In NH, however, mortgages are typically used where:
AThe borrower transfers title to the lender
BThe borrower retains title, granting the lender a lien security interest✓ Correct
CA neutral trustee holds title throughout the loan
DTitle passes to the lender upon the first missed payment
Explanation
NH uses the mortgage (lien theory) rather than the deed of trust. Under a mortgage, the borrower retains legal title to the property and grants the lender a security interest (lien) in the property.
Related New Hampshire Escrow & Title Questions
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