South Dakota is a __________ state for real estate lending.
Correct Answer
A) Mortgage state (lien theory)
South Dakota is a lien theory (mortgage) state. The borrower retains title to the property and the lender holds a lien as security for the loan. If the borrower defaults, the lender must go through judicial foreclosure to obtain the property.
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Related Topics & Key Terms
Related Topics:
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.
More Financing Questions
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