Question

_______ is a security instrument used in lieu of a mortgage that involves three parties: the borrower who signs the trust deed, the lender who benefits from the agreement in the event of default, and a neutral third party (trustee) to whom the property is hypothetically deeded as security for payment of the debt. Upon default, the trustee can sell the property and transfer the proceeds to the lender to pay off the debt. Also called a deed of trust.

Answer 1

A trust deed is a security instrument used in lieu of a mortgage that involves three parties: the borrower, the lender, and a neutral third party. Upon default, the trustee can sell the property and transfer the proceeds to the lender to pay off the debt.

Step-by-step explanation:

A trust deed is a security instrument used in lieu of a mortgage that involves three parties: the borrower who signs the trust deed, the lender who benefits from the agreement in the event of default, and a neutral third party (trustee) to whom the property is hypothetically deeded as security for payment of the debt. Upon default, the trustee can sell the property and transfer the proceeds to the lender to pay off the debt. This instrument is also called a deed of trust.