Under Oregon's Trust Deed Act, what happens to the trust deed once the borrower has fully repaid the loan?
Correct Answer
C) The trustee executes and records a deed of reconveyance to release the lien.
Under ORS Chapter 86, when a trust deed loan is fully repaid, the trustee executes and records a deed of reconveyance. This document officially transfers bare legal title back from the trustee to the grantor (borrower) and releases the trust deed lien from the property's title. The beneficiary (lender) delivers the original trust deed and note to the trustee with a written request for reconveyance, and the trustee then prepares and records the deed of reconveyance.
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Related Topics & Key Terms
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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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