On June 26, 2020 Oregon passed House Bill 4204 (“Bill”). The Bill provides limitations on lenders being able to enforce default remedies against borrowers suffering the effects of the COVID-19 pandemic through the emergency period defined as March 8, 2020 through September 30, 2020. The highlights of the Bill are as follows
- During the emergency period, a lender may not treat as a default a borrower’s failure to make a periodic installment payment or pay any other amount that is due to the lender on or in connection with an obligation that is subject to a financing agreement if at any time during the emergency period the borrower notifies the lender that they cannot make the payment.
- A lender that has received notification as set forth above may not impose late fees, penalties or a default rate of interest.
- A lender that has received notification as set forth above may not require or charge for an inspection, appraisal or a broker opinion of value, not otherwise permitted in the absence of a default.
- Lenders are required to defer payments if the lender and borrower do not otherwise agree on loan mitigations, deferral or another foreclosure avoidance measure and permits a borrower to pay deferred amounts at the end of the loan term.
- A lender may not during the emergency period: foreclose a trust deed by advertisement and sale; bring an action or suit to foreclose a mortgage or trust deed; or bring an action or suit to foreclose a lien or other security interest.
- Any trustee sale occurring during the emergency period is void and does not transfer or foreclose any rights to the subject property.
- The Bill does not apply to judgments of foreclosure and sale, writs of execution or notices of a trustee’s sale that were: 1) issued or given before the emergency period began; 2) occur in connection with a tax foreclosure proceeding; or 3) occur after a person has recorded a notice of intent to abandon real property or judicial order authorizing abandonment is entered.
- The lender within 60 days of June 26, 2020 must provide a written notice to the borrower advising of the borrower’s rights for accommodation under this Bill.