West Virginia recognizes both mortgages and deeds of trust as security instruments. In a deed of trust used in West Virginia, the trustee:
Correct Answer
B) Holds legal title to the property as security until the loan is paid off
West Virginia recognizes both mortgages (under lien theory) and deeds of trust as security instruments. In a deed of trust, a neutral third-party trustee holds legal title to the property as security for the lender (beneficiary). When the loan is paid in full, the trustee reconveys title to the borrower (grantor). If the borrower defaults, the trustee may conduct a non-judicial foreclosure sale under the power of sale clause, without requiring court action.
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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.
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