Under Washington's Deed of Trust Act (RCW 61.24), which document is used as the primary security instrument for real property loans in Washington State?
Correct Answer
B) Deed of trust with a trustee holding title
Under RCW 61.24, Washington uses the deed of trust as its primary security instrument. In a deed of trust, the borrower (trustor) conveys title to a neutral third party (trustee) to hold on behalf of the lender (beneficiary), enabling non-judicial foreclosure through a trustee's sale rather than requiring court involvement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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.
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