2015 ORS 86.722¹
Correction of error concerning status or effect of trust deed
  • rights of bona fide purchaser

(1) To correct an error concerning the status or effect of a recorded trust deed, a person may present an instrument to the county clerk for recording in the deed and mortgage records of the county, and the county clerk shall record the instrument if it otherwise meets the requirements for an instrument to be recorded under ORS chapter 205 and is in substantially the following form:

______________________________________________________________________________

CORRECTION OF ERROR(S)

This instrument is recorded to provide notice of an error relating to:

Original Deed of Trust

County clerk instrument record #:

Grantor (name):

Trustee (name):

Beneficiary (name):

Assignee(s), if any (name(s)):

The error to be corrected is (check one):

[ ] Erroneous reconveyance

of trust deed

Date of recording:

County clerk instrument record #:

[ ] Erroneous recording of

Trustee’s Deed

Date of recording:

County clerk instrument record #:

The result of this error correction is (check one): [ ] The original trust deed is hereby reinstated; or [ ] The Trustee’s Deed is hereby set aside as though the erroneous instrument had not been recorded.

Date _____

Name (printed) _________

Signature _________

(Beneficiary of original deed of trust)

STATE OF OREGON )

) ss.

County of_____ )

The foregoing instrument was acknowledged before me this ___ day of________, 2___, by________.

____________

Notary Public for Oregon

My commission expires: ______

STATE OF OREGON )

) ss.

County of_____ )

The foregoing instrument was acknowledged before me this ___ day of________, 2___, by ________ and by ______ of________, a corporation on behalf of the corporation.

_______________

Notary Public for Oregon

My commission expires: ______

______________________________________________________________________________

(2) Reinstatement of a trust deed based on the correction of an error under this section does not affect the rights of a bona fide purchaser for value or of a bona fide purchaser for value holding a security interest in the real property if the purchaser acquired an interest after the erroneous trust deed reconveyance or trustee’s deed was recorded and before the error was corrected. [2009 c.628 §3]

Notes of Decisions

Where lender beneficiary uses correc­tion deed to set aside trustee's deed as though it "had not been recorded," as used in this sec­tion, that ac­tion does not automatically unwind non-judicial foreclosure sale, void legal transfer of interest to purchaser obtained at that sale or reinstate borrower's title and obliga­tions under original trust deed. Hucke v. BAC Home Loans Servicing, L.P., 272 Or App 94, 355 P3d 154 (2015)

Notes of Decisions

For purposes of Oregon Trust Deed Act, beneficiary of trust deed is per­son named or otherwise designated in trust deed as per­son to whom secured obliga­tion is owed. Niday v. GMAC Mortgage, LLC, 251 Or App 278, 284 P3d 1157 (2012), aff'd on other grounds, 353 Or 648, 302 P3d 444 (2013)

Statutes regulating trust deeds do not regulate transfers of promissory notes. Sovereign v. Deutsche Bank, 856 F. Supp. 2d 1203 (D. Or. 2012)

Statutes regulating trust deeds are not preempted by federal Home Owner's Loan Act. Higley v. Flagstar Bank, FSB, 910 F. Supp. 2d 1249 (D. Or. 2012)

For purposes of Oregon Trust Deed Act, "beneficiary" is lender to whom obliga­tion that trust deed secures is owed or lender's successor in interest; an entity that is not a lender may not be trust deed's "beneficiary" unless it is lender's successor in interest. Niday v. GMAC Mortgage, LLC, 353 Or 648, 302 P3d 444 (2013); Brandrup v. ReconTrust Co., 353 Or 668, 303 P3d 301 (2013)

For purposes of Oregon Trust Deed Act, only pertinent interests in trust deed are beneficial interest of beneficiary and legal interest of trustee. Brandrup v. ReconTrust Co., 353 Or 668, 303 P3d 301 (2013)

Law Review Cita­tions

23 WLR 37, 55 (1987); 67 OLR 306 (1988); 69 OLR 851 (1990)


1 Legislative Counsel Committee, CHAPTER 86—Mortgages; Trust Deeds, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors086.­html (2015) (last ac­cessed Jul. 16, 2016).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2015, Chapter 86, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano086.­html (2015) (last ac­cessed Jul. 16, 2016).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.