Which security instrument is primarily used in Hawaii real estate transactions to secure a loan against real property?
Correct Answer
B) Mortgage with the borrower retaining title to the property
Hawaii uses the mortgage as its primary security instrument. Unlike states that use deeds of trust, in Hawaii the borrower (mortgagor) retains title to the property while granting the lender (mortgagee) a lien as security for the loan. This is a two-party instrument governed by Hawaii's mortgage law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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