easy · National Real Estate Exam financing

What happens to the legal title in an intermediate-theory state if the borrower defaults on their mortgage payments?

  1. Title remains with the lender for the entire term of the loan.
  2. It stays with the borrower alone until a court orders a sale.
  3. It automatically reverts to the state government's ownership upon default.
  4. Title is held by the borrower but transfers to the lender upon default

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