An instrument representing an interest in real property created to secure repayment of the debt is called a:
A) warranty deed.
B) foreclosure.
C) mortgage.
D) default judgment.

Question

Quizplus · Accepted Answer

A mortgage is a legal agreement between a lender and borrower in which the borrower pledges real property as collateral for a loan. The mortgage serves as security for the lender, ensuring repayment of the loan. In the event of default, the lender can foreclose on the property and sell it to recoup their losses. A warranty deed is a document that transfers ownership of real property, but does not provide security for a debt. Foreclosure is a legal process used by a lender to repossess and sell a property when the borrower defaults on their loan. A default judgment is a ruling by a court against a defendant who has failed to appear or respond to a lawsuit.

An Instrument Representing an Interest in Real Property Created to Secure