Question

One of the duties of the mortgagor in a deed-of-trust mortgage document is the mortgagor's promise to maintain an adequate amount of which of the following on the property?

a) Homeowners insurance
b) Property taxes
c) Utilities
d) Lawn care services

Answer 1

The mortgagor's duty in a deed-of-trust mortgage is to maintain an adequate amount of homeowners insurance on the property, protecting both their interests and those of the lender.

Step-by-step explanation:

One of the duties of the mortgagor in a deed-of-trust mortgage document is the promise to maintain an adequate amount of homeowners insurance on the property. This insurance is critical because it ensures the property is protected against losses that may otherwise jeopardize the lender's security in the property. Obtaining and maintaining adequate homeowners insurance is often a requirement stipulated by lenders to protect their investment, as the property serves as collateral for the mortgage loan.