The Oregon Department of Justice as recently amended its rules regarding foreclosure avoidance measure notices. The rules implement the foreclosure avoidance measure notice provisions found in OR Laws 2013, chapter 304. These rules describe and procedure that a beneficiary must follow when seeking to foreclose a residential trust deed.

Rule 137-120-0020 regards the procedure a beneficiary must follow where the grantor is either ineligible for a foreclosure avoidance measure, or where the grantor does not comply with a foreclosure avoidance measure previously agreed to. In these circumstances, the beneficiary or the beneficiary’s agent must mail a notice to the grantor within ten days of making the determination. The notice must specifically describe in plain language the basis for the beneficiary’s determination that the grantor is either not eligible for a foreclosure avoidance measure, or that the grantor has not complied with an agreement for forbearance, a loan modification, a short sale, a deed-in-lieu of foreclosure, or a different foreclosure avoidance measure. Additionally, the notice must include:

• the name of the grantor,
• the name of the beneficiary,
• the address of the property at issue,
• the date of the property’s trustee sale if one is pending, and
• provide contact information for the Oregon State Bar and low-cost legal service providers

A sample “Form 20”, which a foreclosure avoidance measure notice must substantially comply with, is provided as an appendix to the rules. These provisions are effective immediately and scheduled to expire on January 31, 2014.

 

 

Paul McSheffrey, J.D. is Regulatory Compliance Consultant at Bankers Advisory, Inc. He is a graduate of Northeastern University and earned his Juris Doctor at the New England School of Law. Paul is admitted to the Bar in Massachusetts and New York. He can be reached at paul@bankersadvisory.com