Final answer:
In a deed of trust, the beneficiary, typically the lender, can claim the property in the event of a mortgage loan default. The trustee may be instructed to foreclose on the property to recover the debt. A cosigner, if present, may also be held responsible for repayment.
Step-by-step explanation:
In the event of a default on mortgage loan payments in a deed of trust situation, the property can be claimed by the beneficiary, typically the lender or bank that provided the mortgage loan. The deed of trust involves three parties: the trustor (borrower), the beneficiary (lender), and the trustee, an independent party who holds the title to the property.
If the trustor fails to make the required loan payments, the beneficiary can instruct the trustee to initiate the foreclosure process and ultimately claim the property to recover the outstanding debt. If there is a cosigner on the loan, the cosigner may also be legally obligated to repay some or all of the debt if the original borrower does not fulfill their payment obligations.