Finance
In Oregon, a deed of trust used as a security instrument for a real estate loan differs from a mortgage in that a deed of trust:
ARequires judicial foreclosure
BTransfers bare legal title to a trustee to hold as security✓ Correct
CIs only used for commercial real estate
DDoes not accrue interest
Explanation
A deed of trust differs from a mortgage in that the borrower (trustor) conveys bare legal title to a neutral third-party trustee who holds it as security for the lender (beneficiary). This three-party arrangement allows non-judicial foreclosure if the borrower defaults.
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