Oregon Enacts Short Sale Provisions Involving Nonprofits in Context of Foreclosure
by: Paul McSheffrey
Oregon has enacted new provisions regarding residential foreclosures with House Bill 3389. The Act amends Oregon statutes ORS 86.705 and 86.735.
One of the amendments regards transactions where a nonprofit entity purchases property subject to a residential trust deed or purchases a note from a beneficiary that secures a grantor’s obligation. In these circumstances, a beneficiary may not as a condition of approving a short sale in lieu of foreclosure, require a nonprofit entity to enter an agreement with the beneficiary or grantor that bars the grantor from owning or occupying the property after the short sale. In order for that provision to apply, the grantor or nonprofit entity must give notice to the beneficiary that they intend for the grantor to continue to own or occupy the property subject to the short sale. Additionally, the grantor must allow the beneficiary reasonable access to the property for the purpose of inspecting or appraising the property. However, the preceding provisions do not apply if approving the short sale would require the beneficiary to breach either a legal obligation, or a contract related to a residential trust deed recorded before the effective date of this Act.
Under ORS 86.735, limitations are set for when a trustee may foreclose a trust deed by advertisement and sale. ORS 86.735(4)(a) and (b) are amended to reflect the recent changes created by Enrolled Senate Bill 558. A beneficiary must now file in the county where the property is located, a certificate of compliance that is valid and unexpired at the time the notice of default is recorded. In the alternative, the beneficiary must file a copy of the unexpired affidavit where the beneficiary claimed an exemption allowed by Senate Bill 558.
For more detail regarding Enrolled Senate Bill 558, see please see a previous recent article “Oregon Adds Provisions Regarding Foreclosure of Residential Trust Deeds”.
These provisions are effective immediately up passage on June 28, 2013.
About the Author:
Paul McSheffrey, Esq. is Associate Counsel and 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. He 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.