Which type of security instrument is used in Oklahoma to secure a mortgage loan on real property?
Correct Answer
D) Mortgage
Oklahoma is a lien-theory state that uses a mortgage as the primary security instrument for real estate loans. Under the Oklahoma Trust Deed and Mortgage Act (Title 46 O.S.), mortgages — not deeds of trust — are the standard instrument used to secure loans on real property. The lender holds a lien on the property, and the borrower retains title.
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Related Topics & Key Terms
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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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