Sandra has fallen behind on her trust deed loan in Bend, Oregon. The trustee has recorded a Notice of Default and the trustee's sale is scheduled for 30 days from today. Sandra has just received a cash gift from a family member and wants to reinstate her loan. Under the Oregon Trust Deed Act, what is the latest point at which Sandra can exercise her statutory right to reinstate the loan and stop the sale?
Correct Answer
B) Up to five days before the trustee's sale
Under ORS 86.778, a borrower has a statutory right to reinstate a trust deed loan by paying all past-due amounts, fees, and costs up to five days before the scheduled trustee's sale. This reinstatement right is a critical protection for Oregon borrowers facing non-judicial foreclosure. If Sandra pays the required amounts at least five days before the sale date, the foreclosure process must stop.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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