In a mortgage context, who holds the lien?

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Study for the Burk Baker National Test. Use flashcards and multiple choice questions with hints and explanations to prepare effectively. Get ready for your exam!

Multiple Choice

In a mortgage context, who holds the lien?

Explanation:
In a mortgage, a lien is the lender’s legal claim against the property that secures the loan. The borrower signs a mortgage (or deed of trust) and the lender records a lien against the property's title. This gives the lender the right to be repaid from the property's value if the borrower defaults, typically through foreclosure, before other creditors. The government may place its own tax lien for overdue taxes, but that’s separate from the mortgage lien, and a real estate agent does not hold a lien.

In a mortgage, a lien is the lender’s legal claim against the property that secures the loan. The borrower signs a mortgage (or deed of trust) and the lender records a lien against the property's title. This gives the lender the right to be repaid from the property's value if the borrower defaults, typically through foreclosure, before other creditors. The government may place its own tax lien for overdue taxes, but that’s separate from the mortgage lien, and a real estate agent does not hold a lien.

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