Asked by Nguyên Tr?ng on Jun 08, 2024
Verified
Xavier deeds to Peter,a trustee,his property in the form of security for the loan,which is lent by Smith,the beneficiary of the trust.The nature of this transaction renders it as a deed of trust.Under these circumstances,if Xavier defaults to pay the loan,which of the following is the appropriate way in which Smith can recover his loan?
A) By asking Xavier to enter into an action and sale contract
B) By exercising the right of exoneration
C) By exercising right of reimbursement
D) By notifying Peter to sell the property
Deed of Trust
A legal document used in some states that involves three parties—the borrower, the lender, and the trustee—and it serves as a lien on real property.
Default
The failure to fulfill a legal obligation, especially the failure to pay back a loan according to the agreed-upon terms.
Beneficiary
An individual or entity entitled to receive benefits or assets under a legal instrument, such as a will, trust, or insurance policy.
- Discern the rights and responsibilities of parties involved during the processes of mortgage payoff, default, and foreclosure actions.
Verified Answer
Learning Objectives
- Discern the rights and responsibilities of parties involved during the processes of mortgage payoff, default, and foreclosure actions.
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