Full question:
I'm trying to find the form for Notice of Default, for a 1st trust deed.
- Category: Real Property
- Date:
- State: Oregon
Answer:
A Trust Deed is a legal document recorded with a county recorder’s office that creates a secured lien on real property. This lien serves as collateral for lenders and trust deed holders. In some states, a Mortgage instrument is used instead of a Trust Deed.
When a borrower wants to purchase real estate, they need a loan. The borrower signs a Promissory Note, which is a promise to repay the lender. The recorded Trust Deed establishes the lender's secured interest in the property. If the borrower fails to make payments, the lender or trust deed investor can seek repayment through the real property.
A First Trust Deed has priority over a Second Trust Deed based on the recording date. The earlier the Trust Deed is recorded, the higher its priority. If you hold a Second Trust Deed and the borrower defaults on the First, you must make the First Trust Deed payments to avoid foreclosure and losing your investment.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.