Would any one care to interpret the different phrases of the paragraph below used in a deed of trust.

This is not a legal dispute, just me trying to translate to common language.

Yes, I have an attorney .

For instance, my interpretation of "Exemptions waived" means that the borrower has certain exempted or protected property under under the law. In other words if he defaults, I cannot take his last dinner plate. However, with "Exemptions waived" he is waiving that exemption.

We are talking conceptional here. Boiler plate stuff. Not a 5 year legal battle between two Philadelphia layers.

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This security trust incorporates the provisions of the Code of Virginia, as amended, Title 55, Sections 59 and 60, except as changed herein.

Exemptions waived; subject to all upon default; renewal or extension permitted; insurance required to cover replacement value of property; right of anticipation reserved; reinstatement permitted; substitution of Trustee permitted; any Trustee may act; trustee's commission in the event of advertisement but payment before sale shall be 2.5% of the balance outstanding on the note plus interest, except that in no event shall the trustee's commission be less than $250.00; and bidder's deposit of not more than ten per cent (10%) may be required

I read it as any clauses that would halt the sale have been satisfied. For example, when I bought my house it was contingent on two things:
1). The structure that was infringing upon the overland drainage canal be removed and restored to green space.
2). Property inspection.

There can be others as I understand them, but once those were satisfactorily addressed, the exemptions were waived and the sale could continue.

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This security trust incorporates the provisions of the Code of Virginia, as amended, Title 55, Sections 59 and 60, except as changed herein.

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First thing you should do is read and understand Title 55, and particularly Sections 59 and 50 of that title. I assume they concern trust deeds.

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Exemptions waived;

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Once you have read Title 55, I have a feeling that the meaning of this will be clear. But I'm guessing it concerns what you think it does (as you stated in your opening post).

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subject to all upon default;

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If the borrower defaults, the DoT is subject to everything in the statute. Whoever wrote this should have been clearer.

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renewal or extension permitted;

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I imagine this means that the parties to the trust deed may opt to extend the term of it. Unnecessary boiler plate, apparently.

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insurance required to cover replacement value of property;

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As opposed to whatever the statute defaults to: purchase value perhaps.

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right of anticipation reserved;

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An anticipatory breach of contract is when one party says, for example, "I'm not going to be able to make the payment next month". The other party can foreclose (in this case) based upon that statement. My guess is that this is what is meant.

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reinstatement permitted;

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If the borrower misses a payment, he or she can catch up, and the trust deed is then still valid.

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substitution of Trustee permitted; any Trustee may act;

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If the trust deed names one entity as trustee, another entity may be substituted for the first one. And either one can foreclose the trust deed, etc.

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trustee's commission in the event of advertisement but payment before sale shall be 2.5% of the balance outstanding on the note plus interest, except that in no event shall the trustee's commission be less than $250.00; and bidder's deposit of not more than ten per cent (10%) may be required

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Fairly clear. Again, I imagine this modifies the standard language of Title 55, if indeed there is any language specifying what the trustee gets paid for the foreclosure paperwork, etc.

Thanks AK. It is the "Exemptions waived" concept that I am trying to grasp.

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Originally Posted by hkstroud

Thanks AK. It is the "Exemptions waived" concept that I am trying to grasp.

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As I wrote, you got it right at the beginning. In each state, certain classes of property, sometimes only to a set dollar amount, are "exempt" from execution (on judgments). There is a list of exemptions in the (federal) bankruptcy code too. In particular, one such exemption in many states is what is called a "homestead exemption". The deed of trust trustor (the borrower) is waiving that exemption. Obviously it is a fundamental element of a mortgage or deed of trust, else it would be worthless as security to the lender.

Here, by the way, are the pertinent statutes: http://law.lis.virginia.gov/vacode/title55/:

Article 2. Form and Effect of Deeds of Trust; Sales Thereunder; Assignments; Releases
§ 55-58 Form of deed of trust to secure debts, etc
§ 55-58.1 Requirements for trustees Credit line deed of trust defined; relative priority of credit line deed of trust and other instruments of judgment
§ 55-58.3 Priority of residential refinance mortgage over subordinate mortgage
§ 55-59 How deed of trust construed; duties, rights, etc., of parties
§ 55-59.1 Notices required before sale by trustee to owners, lienors, etc.; if note lost
§ 55-59.1:1 Expired
§ 55-59.2 Advertisement required before sale by trustee
§ 55-59.3 Contents of advertisements of sale
§ 55-59.4 Powers and duties of trustee in event of sale under or satisfaction of deed of trust
§ 55-60 Meaning of phrases that may be included in such trust deed
§ 55-60.1 Evidences of indebtedness placed on equal footing
§ 55-61 Sales under deeds of trust which contain no maturity date or provision authorizing sale
§ 55-61.1 Validation of conveyances of real property under trust instrument not authorizing sale
§ 55-62 Permissible form for notice of sale under deed of trust
§ 55-63 Construction of deeds requiring notice by advertisement in newspaper
§ 55-64 Disposition of surplus from trustee's sale after death of grantor
§ 55-64.1 Title to real estate sold not affected by nonlisting of secured notes for taxation
§ 55-65 Validation of certain sales made under deeds of trust
§ 55-65.1 Validation of certain sales made under deeds of trust prior to October 1, 1977
§ 55-66 Validation of other sales under deeds of trust
§ 55-66.01Protection of assignees or transferees of debts secured by real estate; form of certificate of transfer

"... § 55-60. Meaning of phrases that may be included in such trust deed.The following provisions may be incorporated in any such deed of trust in the respective short forms indicated, namely:
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(3) The words "exemptions waived," or words of like purport, shall be construed as if the deed set forth: "The grantor hereby waives the benefit of his exemptions as to the debt hereby secured and as to all other obligations which may be imposed upon him by the provisions of this deed of trust. ..."

Again, thanks AK. Need a loan?

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Originally Posted by hkstroud

Again, thanks AK. Need a loan?

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Secured? :)