Maria purchases a home in Portland, Oregon, financing it with a conventional loan. Her lender requires a security instrument to protect the loan. Under Oregon law, which instrument will most likely be recorded against the property?
Correct Answer
B) A trust deed naming Maria as grantor, a trustee, and the lender as beneficiary
Oregon is a trust deed state under ORS Chapter 86. When Maria obtains a conventional loan, the lender will require a trust deed to be recorded. The trust deed names Maria as the grantor (borrower), a neutral trustee (often a title company), and the lender as the beneficiary. This recorded instrument creates a lien on the property and enables non-judicial foreclosure if Maria defaults.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
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