Escrow & Title

In Oregon, what is a 'partial release' of a mortgage or deed of trust?

AA temporary reduction in mortgage payments
BThe release of a portion of the collateral (one parcel from a blanket lien) while the loan continues on the remaining property✓ Correct
CThe lender's partial forgiveness of outstanding principal
DA release of the guarantor from personal liability

Explanation

A partial release allows the lender to release specific parcels or portions of collateral securing a blanket mortgage while the loan balance continues. This is used in Oregon land development when a developer has multiple lots under one blanket deed of trust — as each lot sells, the developer pays a specified amount and receives a partial release for that lot, freeing it to transfer to the buyer.

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