Finance
North Carolina is primarily a 'deed of trust' state rather than a 'mortgage' state. What is the key difference?
AA deed of trust involves two parties; a mortgage involves three
BA deed of trust involves three parties (borrower, lender, trustee); a mortgage involves two✓ Correct
CA deed of trust is used only for commercial properties
DA mortgage allows non-judicial foreclosure; a deed of trust requires court action
Explanation
In NC, a deed of trust involves three parties: the borrower (trustor), the lender (beneficiary), and a neutral trustee who holds legal title until the loan is repaid.
Related North Carolina Finance Questions
- A 'reverse mortgage' in North Carolina is available to homeowners who are:
- NC's 'Home Advantage Mortgage' program offered by NCHFA is specifically designed for:
- Which federal law requires lenders to provide the Loan Estimate to a borrower within 3 business days of receiving a loan application?
- The Federal Reserve's monetary policy decisions affect NC mortgage interest rates primarily because:
- A 'construction loan' in NC typically converts to a permanent mortgage upon:
- Which of the following loan features was specifically targeted by the Dodd-Frank Act's 'Ability to Repay' rule?
- Private Mortgage Insurance (PMI) is typically required on conventional loans when the LTV exceeds:
- A NC borrower who qualifies for a USDA Section 502 loan is most likely purchasing in:
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →