Summary – State of Oregon HB 4204 related to the COVID-19 Pandemic
The bill establishes an emergency period of 3/8/2020-9/30/2020. The emergency period may be extended by executive order not later than 30 days before 9/30/2020. If the borrower notifies the lender that the borrower will not be able to make a period installment then the following apply:
- 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 during the emergency period
- A lender may not impose late fees, penalties or a default rate of interest.
- A lender may not require or charge for an inspection, appraisal or a broker opinion of value, not otherwise permitted in the absence of a default.
- A lender may not 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
- If a foreclosure prevention measure is not otherwise agreed to deferred payments during the emergency period will be deferred to the loan maturity date.
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.
All foreclosure of trust deeds, recording a notice of default, filing and foreclosure complaint, and entry of foreclosure judgments are barred until after 9/30/2020 or later if extended by the governor.
If a foreclosure was initiated between 3/8/2020 and 6/30/2020 the timeline to complete the foreclosure is tolled and may continue after the emergency period uninterrupted.
The lender within 60 days of June 26, 2020 (no later than 8/29/2020) must provide a written notice to the borrower advising of the borrower’s rights for accommodation under this Bill. The borrower must give the notice only once during the emergency period. The lender must receive a notice the borrower will not be able to pay which states:
- If the property is a residence with 4 or fewer units the notification received must attest that the borrower’s failure to pay is a result of a loss of income related to the Covid-19 pandemic
- If the property is commercial or residential with more than 4 units the notification must include financial statements or other evidence that demonstrates a loss of income related to the Covid19 pandemic and must disclose any funds the borrower received from the US SBA under the paycheck protection program.
If there was a judgment, writ, or notice of sale issued before the emergency period began then the file may proceed. Not all counties agree with this interpretation and for non-judicial sales you should seek the interpretation of your title company.
Posted By: The Mortgage Law Firm https://mtglawfirm.com/