Patricia has fully paid off her trust deed loan on her Medford, Oregon, home. What document must be recorded to clear the trust deed lien from the title and restore full legal title to Patricia?
Correct Answer
C) A deed of reconveyance executed by the trustee
When a trust deed loan is fully repaid in Oregon, the trustee executes and records a deed of reconveyance (also called a full reconveyance). This document transfers bare legal title back from the trustee to the grantor (borrower), effectively releasing the trust deed lien and clearing the title. The beneficiary (lender) typically requests the reconveyance from the trustee upon receiving full payoff. This process is governed by ORS Chapter 86.
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Related Concepts
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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%.
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