By February 1, 2014 0 Comments

New Mortgage and Foreclosure Bills Introduced in the 2014 Oregon Legislature

2193651771_fe55f02311The Oregon Legislature will convene on February 3 and at least a few mortgage and foreclosure bills will haunt the hallways. Bills to watch include:

HB 4033

This bill requires a trust deed beneficiary to provide a copy of the note and a “beneficiary statement” and/or a “payoff statement” within 21 days from receipt of a demand from an “entitled person”. The demand must be made prior to foreclosure or within 2 months after a notice of default is recorded or a judicial foreclosure commenced. An “entitled person” includes not only the grantor, but a beneficiary, subordinate lienholder, or escrow agent. This Republican-sponsored bill is a confusing muddle and seems to do more harm than good to all involved so hopefully it will haunt the halls only briefly before passing into the Great Beyond where all bad ideas enjoy their final rest.

HB 4112

This ghastly bill brings to Oregon a horrible practice resurrected in Texas years ago and decried ever since: property tax loans. Sketchy loan shark-like entities prey on those who are struggling to pay property taxes, making usurious loans with outrageous fees all secured by a property tax lien that takes priority even over the mortgage. If the homeowner cannot pay, the lender gets to foreclose using an expedited process usually available only to counties. Having let the ghouls out years ago, Texas is now struggling with how to rein in its own predatory lenders. The question remains: Will Oregon lawmakers have the courage to protect vulnerable citizens or will they unleash another wave of predatory lending in this state?

HB 4132

This Democrat-sponsored bill prohibits sending certain potentially misleading advertisements for mortgage loan services or other extensions of credit secured by real property unless the sender has a previous business relationship with recipient and complies with certain requirements. Violations would be an unlawful trade practice.

HB 4065

This bill requires language in the notice of trustee’s sale warning purchasers that the property may have been used in manufacturing methamphetamines. Although a noble effort, it is difficult to know what purpose form language in the notice of sale serves. However, if purchasers have never considered the possibility that an abandoned home was once a meth house, then perhaps the notice should also contain warnings that the property may have been haunted by ghosts, the sight of alien abductions, or once decorated in tacky 70s decor.

HB 4148

This bill revises the interest rate on deferred property taxes from six percent compounded annually to six percent per annum.

HB 4025

This bill simply clarifies that the maximum Oregon VA home or farm loan amount applies to each individual loan.

 

To view any of the bills introduced this session, visit the Oregon Legislative Information System here.

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