A mortgage in Hawaii creates what type of encumbrance?

A mortgage in Hawaii creates what type of encumbrance?

• A. A non-voluntary lien against the property
• B. A specific voluntary lien against the borrower's property
• C. A general claim against all property assets
• D. A leasehold interest in the property

Answer: (B)

A mortgage in Hawaii is classified as a specific voluntary lien against the borrower's property. This means that when a borrower takes out a mortgage, they willingly encumber their property as security for the loan. The term "specific" indicates that the lien pertains only to a particular piece of property rather than to all the borrower's assets. In the context of a mortgage, the encumbrance secures the lender's interest in that specific property, ensuring that they have a claim against it in the event of default. This type of lien explicitly ties the mortgage obligation to the property itself, making it a clear and direct interest rather than a broader claim on all assets. In contrast, the other choices describe different types of encumbrances that do not accurately characterize a mortgage. A non-voluntary lien, for example, arises without the owner's consent, typically through legal judgments or tax liens. A general claim against all property assets would imply a more expansive lien, which does not apply in the case of mortgages that are tied to specific properties. Lastly, a leasehold interest refers to the right to use and occupy property for a specified term, which is entirely different from the concept of a mortgage.

A mortgage in Hawaii is classified as a specific voluntary lien against the borrower's property. This means that when a borrower takes out a mortgage, they willingly encumber their property as security for the loan. The term "specific" indicates that the lien pertains only to a particular piece of property rather than to all the borrower's assets.

In the context of a mortgage, the encumbrance secures the lender's interest in that specific property, ensuring that they have a claim against it in the event of default. This type of lien explicitly ties the mortgage obligation to the property itself, making it a clear and direct interest rather than a broader claim on all assets.

In contrast, the other choices describe different types of encumbrances that do not accurately characterize a mortgage. A non-voluntary lien, for example, arises without the owner's consent, typically through legal judgments or tax liens. A general claim against all property assets would imply a more expansive lien, which does not apply in the case of mortgages that are tied to specific properties. Lastly, a leasehold interest refers to the right to use and occupy property for a specified term, which is entirely different from the concept of a mortgage.