Escrow & Title
In NC, a 'deed of trust' has three parties while a 'mortgage' has two. In a deed of trust, the trustee's role is to:
AMake monthly loan payments on behalf of the borrower
BHold legal title to the property as security; upon default, the trustee may foreclose by power of sale✓ Correct
CManage the property for the benefit of the lender
DRepresent the borrower in all transactions
Explanation
In a NC deed of trust, the trustee holds legal title as security for the lender; if the borrower defaults, the trustee can sell the property through the power of sale (non-judicial foreclosure) to satisfy the debt.
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