At closing, the title company discovers that the property description on the deed differs slightly from the legal description in the loan documents due to a recent survey correction. The mortgage amount is $485,000. What is the most appropriate action?
Correct Answer
B) Delay closing until all legal descriptions match exactly
Legal descriptions in loan documents must match the property deed exactly. Any discrepancy in legal descriptions can affect the validity of the mortgage lien and must be resolved before closing to ensure proper collateral securing the loan.
Why This Is the Correct Answer
Legal descriptions in loan documents must match the property deed exactly. Any discrepancy in legal descriptions can affect the validity of the mortgage lien and must be resolved before closing to ensure proper collateral securing the loan.
More Mortgage Knowledge Questions
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A veteran previously used $200,000 of VA entitlement and the loan was paid off but the property was not sold. The current VA loan limit is $400,000. How much entitlement does this veteran have available for a new purchase?
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