Greenspoon Marder Financial Services Updates – State of Oregon
Jul 2, 2020
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.
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