Originally Posted by
hkstroud
Thanks AK. It is the "Exemptions waived" concept that I am trying to grasp.
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:
...
(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. ..."