Oregon Update

Oregon Law Changes Foreclosure Notice Timelines

SB 952 was signed into law in Oregon. The measure was effective on August 23rd. The Oregon House Committee on Consumer Protection summarized the bill:

”Strengthens the rights of tenants living in property subject to foreclosure sale. The law requires that tenants in good standing receive advance notice of foreclosure proceedings with specific information regarding tenant’ rights and allows tenants with fixed-term leases to stay after the foreclosure sale for the earlier of 60 days or until the lease expires, except when the purchaser intends to live on the property, in which case only 30 days’ notice is required. The law also provides tenants with weekly or monthly agreements with notice of intent to evict 30 days after the date of foreclosure sale; allow tenants receiving notice of foreclosure to apply pre-paid security deposits toward ongoing rent obligations (and relieves purchaser of any obligations to return security deposits); and clarifies that purchasers do not become “landlords” unless they accept rent from the tenant, enter into a new rental agreement, or fail to terminate the tenancy as provided by the bill.”

Read SB 952

Oregon Passes Loan Modification Legislation

Oregon Governor Ted Kulongoski also recently signed into law H.B. H.B. 2191 expands Oregon law regulating debt consolidation companies to include the regulation of "debt management services" - including services in connection with loan modifications. Under H.B. 2191, a debt management service is any activity done for consideration where a person (i) receives or offers to receive funds from a consumer for the purpose of distributing the funds among the consumer's creditors in full or partial payment of the consumer's debts, (ii) improves or offers to improve a consumer's credit record, credit history or credit rating, (iii) modifies or offers to modify the terms and conditions of an existing loan or obligation, or (iv) obtains or attempts to obtain a concession from a creditor including, but not limited to, a reduction in the principal, interest, penalties or fees associated with a debt. Among other requirements, debt management service providers must (i) register with the Oregon Department of Consumer and Business Services, (ii) post a surety bond of at least $10,000, and (iii) adhere to certain fee limitations.

Read HB 2191

This story reprinted with permission from BuckleySandler, LLP and Infobytes.