In a deed of trust arrangement, who is the neutral third party named to act under the instrument and conduct a sale if required?
Correct Answer
D) The trustee, who acts under the deed of trust
A deed of trust names a trustee as the third party who acts under the security instrument. In a default, that trustee may carry out the sale procedures authorized by the deed of trust and applicable law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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