security for a loan (debt) between a borrower and lender.
Gresham Oregon Trust Deed is a legally binding document used in real estate transactions in the city of Gresham, Oregon. It involves three parties: the borrower (also known as the trust or), the lender (also known as the beneficiary), and a neutral third party known as the trustee. A Gresham Oregon Trust Deed is created when a borrower obtains a loan from a lender to purchase a property in Gresham. To secure the loan, the borrower agrees to transfer the legal title of the property to the trustee, who holds the property in trust until the loan is repaid in full. This transfer of title ensures that the lender has a security interest in the property. In the event of default by the borrower, the lender has the right to sell the property to recover the unpaid loan amount. There are several types of Gresham Oregon Trust Deed, each with its own advantages and considerations. Some common types include: 1. Traditional or conventional trust deed: This type of trust deed follows the standard structure mentioned above, where the borrower transfers the property title to the trustee until the loan is repaid. 2. Deed of reconveyance: Once the loan is fully paid off, the trustee issues a deed of reconveyance to the borrower, transferring the property title back to them. This legally confirms that the borrower has successfully fulfilled their loan obligations. 3. Junior lien trust deed: In cases where multiple loans are taken against a property, the junior lien trust deed holds a secondary position compared to the first lien trust deed. If the property is sold, the proceeds first go towards repaying the first lien trust deed, and any remaining funds are then used to repay the junior lien trust deed. 4. Wraparound trust deed: In this type of trust deed, the borrower obtains a loan from the seller while the existing loan on the property remains in place. The seller receives payments from the borrower, and in turn, continues to make payments on the existing loan. This arrangement is often used when the interest rate on the existing loan is lower than what the borrower could secure from a new lender. In summary, a Gresham Oregon Trust Deed is a legal document used in real estate transactions in Gresham, Oregon, to secure a loan by transferring the property title to a trustee. Different types of trust deeds, such as traditional, reconveyance, junior lien, and wraparound trust deeds, offer various options and flexibility for both borrowers and lenders.
