A Washington real estate broker is explaining the difference between a deed of trust and a mortgage to a first-time homebuyer. Which of the following statements accurately describes a key advantage of Washington's deed of trust system compared to a mortgage?
Correct Answer
B) Deeds of trust allow lenders to foreclose without court involvement, making the process faster
A key feature of Washington's deed of trust system under RCW Chapter 61.24 is that it enables non-judicial foreclosure — the trustee can conduct the sale without filing a lawsuit or obtaining a court order. This makes the foreclosure process faster and less expensive for lenders compared to the judicial foreclosure process required in mortgage states.
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Related Topics & Key Terms
Key Terms:
Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
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.
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