In New Hampshire, what is the primary security instrument used to secure a mortgage loan on real property?
Correct Answer
A) Mortgage, with the borrower retaining title and granting a lien to the lender
New Hampshire is a mortgage-lien theory state. The borrower (mortgagor) retains title to the property and grants the lender (mortgagee) a lien as security for the loan. The mortgage is the primary security instrument used in NH real estate transactions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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.
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