In a Maryland deed of trust, which party holds legal title to the property during the loan repayment period?
Correct Answer
A) The trustee, who holds title on behalf of the lender
In a Maryland deed of trust, the borrower (trustor) conveys legal title to a neutral third-party trustee, who holds that title on behalf of the lender (beneficiary). The trustee's role is to conduct a non-judicial trustee's sale if the borrower defaults, without requiring court involvement. This three-party arrangement distinguishes a deed of trust from a traditional two-party mortgage.
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Related Concepts
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.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
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.
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