Question

Which of the following differentiates a Deed of Trust from a Mortgage?

Select one:
a. A Deed of Trust puts the legal title to the property in the hands of a third party trustee who has the power to sell the property without going through standard foreclosure proceedings.
b. A Deed of Trust is the interest in the property that is used to ensure that the borrower won't default on the loan.
c. A Deed of Trust negates the lenders ability to foreclose on the property.
d. Nothing. A Deed of Trust is exactly the same as a Mortgage.

Answer 1

A Deed of Trust involves a third party a) trustee who holds legal title and can sell the property without standard foreclosure, unlike a Mortgage where the legal title remains with the borrower.

Step-by-step explanation:

Which of the following differentiates a Deed of Trust from a Mortgage? The answer is option (a): A Deed of Trust puts the legal title to the property in the hands of a third party trustee who has the power to sell the property without going through standard foreclosure proceedings.

This is distinct from a mortgage where the legal title remains with the borrower and the lender must go through the foreclosure process to recover the property in the event of default.