Oregon Modifies Provisions Regarding Foreclosure and Rights of Redemption
Foreclosure
The state of Oregon amended its provisions relating to foreclosure. These provisions are effective on January 1, 2020.
The amendment provides that certain information must be included by a person who sends or serves the following documents to a veteran:
a) A notice of termination of tenancy under any provision of ORS chapter 90;
b) A summons in an action for forcible entry or detainer under ORS 105.110;
c) A summons in an action to foreclose a lien upon residential real property under ORS 88.010; and;
d) A notice of foreclosure of a residential trust deed under ORS 86.756.
The above documents must include the following information:
a) A statement that if the recipient is a veteran of the armed forces, assistance may be available from a county veterans’ service officer or community action agency; and
b) Contact information for a service officer appointed for the county in which the recipient lives and contact information for a community action agency that serves the area where the recipient lives; or
c) A statement that contact information for a local county veterans’ service officer and community action agency may be obtained by calling a 2-1-1 information service.
The information requirements needed for the above documents do not apply to documents sent or served by the judicial department.
The amendment provides that the Department of Veterans’ Affairs and the Housing and Community Services Department shall jointly submit a written report on veterans’ housing programs to the interim House committee related to veterans on or before December 1 of each year. The report will include (a) expenditures relating to veterans’ housing programs; (b) programs or initiatives to enroll veterans in or inform veterans of existing housing programs; (c) implementation of programs and training for identification of veterans who are or may become homeless; and (d) training of and coordination with state and local agencies on veterans’ housing programs, including “Operation Welcome Home.”
Rights of Redemption
The state of Oregon modified its provisions relating to rights of redemption. These provisions are effective on January 1, 2020.
Section 2 of the amendment provides that notice should be provided to the seller by a purchaser of residential real property after a complaint has been filed to foreclose a lien on the real property and before the end of the redemption period. The form of the notice is laid down under the amendment.
The amendment also states that “at or before the time of recording the deed transferring the real property purchased after a complaint has been filed to foreclose a lien on the real property and before the end of the redemption period, the purchaser shall file for recording in the official record of the county or counties in which the property described in the deed is situated an affidavit stating that the person complied with the notice requirement.”
Section 3 of the amendment requires a sheriff before conducting an execution sale of real property to post a notice of the sale on a website that was established under ORS 18.92. The notice on the website must include the notice to debtor and notice to prospective bidders. The amendment lays down the forms for each of the notices
Section 4 provides that a complaint in a suit to foreclose a residential trust deed on the lien debtor must include a copy of a notice to lien debtors as an attachment. The amendment lays down the form of the notice to lien debtors and provides that the person filing the complaint should insert in the notice the telephone contact numbers and website addresses prescribed by the Department of Consumer and Business Services by rule under ORS 86.756.
The amended provisions are applicable to (a) purchases of residential real property occurring on or after the effective date of this 2019 Act; (b) notices posted on or after the effective date of this 2019 Act; and (c) complaints filed on or after the effective date of this 2019 Act.
Rhona Kyeyune, LLM, is a regulatory compliance consultant with CLA. She is a graduate of Makerere University and earned her master of laws at Boston University School of Law.
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