Which of the following statements about Minnesota mortgage foreclosure law is NOT accurate?
Correct Answer
C) Minnesota uses a deed of trust as its primary security instrument, allowing a trustee's sale upon default
Option C is NOT accurate — Minnesota uses a MORTGAGE as its primary security instrument, not a deed of trust. In a mortgage state, the borrower retains title and the lender holds only a lien. There is no trustee's sale process in Minnesota. Trustee's sales are associated with deed-of-trust states such as California and Texas. This is a critical Minnesota-specific distinction frequently tested on the state exam.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
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