In Florida's lien theory system, what is the mortgagee's primary security for the loan?
Correct Answer
B) A lien against the property
Correct: In lien theory states like Florida, the mortgagee's security is the lien (security interest) against the property, not legal title. Why not A: Legal title remains with the borrower in lien theory states. Why not C: While personal liability exists, the primary security is the property lien. Why not D: Title insurance protects against title defects but isn't the lender's primary security.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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