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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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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