Which security instrument is primarily used in Nebraska?
Correct Answer
B) Deed of trust
Nebraska commonly uses a deed of trust as the real estate security instrument. Under the Nebraska Trust Deeds Act, the borrower is the trustor, a neutral trustee holds legal title for security, and the lender is the beneficiary. This structure supports the trustee power-of-sale foreclosure process.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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