Massachusetts uses which security instrument?
Question & Answer
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Deed of trust only
Mortgages
Trust deeds only
Trust deeds are not used in Massachusetts. A trust deed involves a third-party trustee who holds legal title until the loan is paid, which is not Massachusetts' approach.
Land contracts only
Land contracts are not security instruments but rather installment sale contracts where the seller retains title until full payment is received.
Why is this correct?
Massachusetts uses mortgages as the primary security instrument. A mortgage creates a lien on the property directly between borrower and lender, giving the lender security interest in the property as collateral for the loan.
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