In Idaho real estate transactions, which security instrument is most commonly used to secure a loan on real property?
Correct Answer
B) A deed of trust naming a third-party trustee
Idaho primarily uses deeds of trust as the security instrument for real estate loans. Under the Idaho Trust Deeds Act (I.C. § 45-1501 et seq.), a deed of trust involves three parties: the grantor (borrower), the trustee (a neutral third party), and the beneficiary (lender). This instrument allows for non-judicial foreclosure via trustee's sale, which is the dominant foreclosure method in Idaho.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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