A South Carolina real estate instructor is teaching a class on mortgage law. She lists several characteristics of the mortgage as a security instrument under South Carolina law. Which of the following is NOT a characteristic of a mortgage in South Carolina?
Correct Answer
D) A trustee holds title to the property on behalf of the lender during the loan term
A trustee holding title on behalf of the lender is a characteristic of a deed of trust, NOT a mortgage. South Carolina uses mortgages as the primary security instrument, and no trustee is involved. Under SC's lien theory, the borrower retains title and the lender holds only a lien.
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Related Topics & Key Terms
Key Terms:
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.
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