David borrowed $350,000 to purchase a home in Eugene, Oregon, and signed a trust deed. He has now defaulted on his loan payments. Under the Oregon Trust Deed Act, what is the most common method the lender's trustee will use to foreclose on the property?
Correct Answer
D) Non-judicial foreclosure through a trustee's sale
Under ORS Chapter 86, Oregon's Trust Deed Act authorizes non-judicial foreclosure through a trustee's sale. This is the predominant foreclosure method in Oregon when a trust deed is used as the security instrument. The trustee follows a statutory process that includes recording a notice of default, providing required notice periods, and conducting a public trustee's sale — all without court involvement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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