Legal Question in Real Estate Law in Oregon
First deed of trust
I have a note, secured by a first deed of trust, which is
signed by the borrower. If the borrower should default
on the note, would I need an additional signature from
the borrower before starting foreclosure proceedings?
Also, I have heard that in some states, foreclosure is
not necessary if one has a first deed of trust. Is this the
case in Oregon?
1 Answer from Attorneys
Re: First deed of trust
Generally, there is no need for a second signature from the borrower prior to starting a foreclosure if the borrower defaults on the note.
There is no provision in Oregon law that eliminates the need for a foreclosure of a trust deed following a default.
If the buyer cooperates, it is possible, in certain cases, for the buyer to give the trust deed beneficiary a "deed in leiu of foreclosure", but such a deed should only be accepted when the trust deed beneficiary has all the information regarding the status of the title to the property (which usually requires a title report).
Prior to considering or starting a foreclosure, you should consult an attorney for assistance in the process. Under Oregon law, only an attorney or a title company can be the trustee for a trust deed, so you will have to work with one or the other to foreclose on the property.
Our office regularly assists clients in foreclosing on properties. We also offer a low cost initial consultation.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
