07 Dec Oregon Legislative Update
The Oregon legislature recently amended its laws regarding notices relating to residential mortgage default servicing, regarding unlawful business practices, regarding foreclosure avoidance measures, and regarding the proceeds from the execution sale of real property. All the legislation discussed in this memorandum is effective January 1, 2018,
Oregon Senate Bill 381
The amended law specifies that the notices the beneficiary/lender must send to grantors/borrowers relating to residential mortgage default servicing must be sent to all addresses on file with the sender, including post office boxes.
The amended language requiring notices be sent to all addresses includes the following:
- With regard to a short sale of residential property, an amended payoff statement sent by the lender to the borrower or his agent;
- With regard to foreclosure avoidance measures, the notice that must be sent within 10 days after beneficiary/lender determines that the grantor/borrower is not eligible for a foreclosure avoidance measure or that he has not complied with the terms of such a measure to which he has agreed; and
- With regard to a foreclosure, all notices that are required to be sent to the grantor/borrower, as well as to an occupant if the sender has actual knowledge that the grantor/borrower is not the occupant of the property.
Oregon House Bill 2090
A person engages in an unlawful trade practice if, in the course of the person’s business, vocation or occupation, the person engages in certain actions set forth in the statute. The amendment adds the following as an unlawful practice:
- Publishing on a website related to the person’s business, or in a consumer agreement related to a consumer transaction, a statement or representation of fact in which the person asserts that the person, in a particular manner or for particular purposes, will use, disclose, collect, maintain, delete or dispose of information that the person requests, requires or receives from a consumer and the person uses, discloses, collects, maintains, deletes or disposes of the information in a manner that is materially inconsistent with the person’s statement or representation.
Oregon House Bill 2359
If the beneficiary/lender under a trust deed determines that a borrower is not eligible for a foreclosure avoidance measure or that the borrower has not complied with the terms of an agreed-upon foreclosure avoidance measure, the beneficiary/lender must mail a written notice to the borrower within 10 days after making the determination. Previously, the beneficiary/lender was also required to mail a copy of the notice to the Department of Justice on the same date of mailing to the borrower; however, this additional requirement has been deleted.
Oregon House Bill 2920
The current law provides that, after a sheriff’s sale of property, certain fees and costs are deducted as permitted by law and the net proceeds are delivered to the court administrator, whereupon the court will enter an order of distribution for the proceeds.
The amendment requires a judgment creditor, upon receipt of the proceeds of the execution sale of real property, to file a satisfaction document for the amount credited against any money award portion of a judgment. A judgment debtor may request in writing to the judgment creditor to file such satisfaction document and, if the judgment creditor does not file a satisfaction document within 10 days after receiving the request, the judgment debtor may file a motion to satisfy the money award, as provided by law. If the court finds that a judgment creditor failed to file a satisfaction document within 10 days after receiving a written request, the court may render a supplemental judgment awarding reasonable attorney fees to the party who filed the motion.