What is the standard security instrument used in Colorado real estate financing that enables the Public Trustee foreclosure process?
Correct Answer
C) A deed of trust
Colorado uses a deed of trust as the standard security instrument in real estate financing. Under C.R.S. § 38-38-101 et seq., the deed of trust conveys title to the Public Trustee, who holds it on behalf of the lender and can conduct a non-judicial foreclosure sale upon default without court action.
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Related Topics & Key Terms
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Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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