New Hampshire is best described as which type of mortgage theory state?
Correct Answer
B) Title theory state that allows both judicial foreclosure and non-judicial foreclosure (power of sale) when the mortgage contains a power of sale clause
New Hampshire is a title theory state, meaning the lender holds legal title to the property through the mortgage deed until the debt is satisfied. NH allows both judicial foreclosure through the courts and non-judicial foreclosure (power of sale) when the mortgage instrument contains a power of sale clause, which is the more common method.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
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.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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