Oregon Adds Provisions Regarding Foreclosure of Residential Trust Deeds
by Paul McSheffrey, Esq.
The state of Oregon recently amended and added provisions to ORS 86.705 to 86.795 regarding foreclosures on residential trust deeds. A beneficiary in these transactions must now request a resolution conference with the grantor before the beneficiary or the trustee files a notice of default or brings suit. The purpose of the resolution conference is for the parties to negotiate a foreclosure avoidance measure. A beneficiary may claim an exemption from this requirement if they submit an affidavit to the Attorney General, stating that they have not commenced more than 175 actions to foreclose a residential trust deed in the prior year.
A beneficiary must request the resolution conference through a service provider appointed by the Attorney General to coordinate a program to enforce these provisions. The request must include a fee determined by the Attorney General, identify the residential trust deed at issue, and include contact information for the beneficiary and grantor. Additionally, the grantor may request a resolution conference if they meet certain criteria such as certification through a housing counselor that they are more than 30 days in default on their obligation.
A facilitator selected by the service provider to conduct the resolution conference will submit to the service provider a written report on the conference. Within five days of receipt of the report, the service provider will issue to the beneficiary a certificate of compliance with these provisions. This certificate is required before any later foreclosure or filing of suit by the beneficiary.
The full requirements and provisions can be found in Enrolled Senate Bill 558. These changes become effective immediately with an operative date of August 4, 2013.
About the Author:
Paul McSheffrey, Esq. is Associate Counsel and Regulatory Compliance Specialist 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. Paul can be reached at paul@bankersadvisory.com
Paul McSheffrey, JD, is a senior regulatory compliance consultant with CLA. He is a graduate of Northeastern University and earned his juris doctor at the New England School of Law. He is admitted to the Bar in both Massachusetts and New York.
Comments are closed.