Which security instrument is primarily used in Mississippi to secure a real estate loan?
Correct Answer
B) A deed of trust, which involves a trustee holding title as security
Under Miss. Code Ann. §89-1-1 et seq. and §89-7-1 et seq., Mississippi uses a deed of trust as its primary security instrument. In a deed of trust, the borrower (trustor) conveys title to a neutral third party (trustee) to hold as security for the lender (beneficiary). This structure enables non-judicial foreclosure via a power-of-sale clause.
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