Oregon Legislature Changes Non-Judicial Foreclosure Procedures Governor Expected to Sign SB 1552 B Into Law

more+
less-

The Oregon Legislature approved Senate Bill 1552 on March 5, 2012, which will require mortgage lenders to meet new requirements to effectuate a non-judicial foreclosure, including mandatory mediation. Additionally, it will end the “dual track” practice of proceeding with a foreclosure while the lender and homeowner negotiate a loan modification. The law will become effective upon signature by the governor.

Mandatory Mediation Requirement (applicable to large lenders only)

The Attorney General will appoint and pay for a mediation service provider “to coordinate a mediation program,” which will be exempt from the public contracting requirements in ORS Chapter 279A and 279B. The funds will come from a $100 fee that lenders will pay to the county clerk each time they present a Notice of Default to be recorded; the clerk will then transfer these funds to the Attorney General each month.

The Attorney General will adopt rules to prescribe qualifications of the mediators, schedule mediation fees, determine the content of the mediation notice and the certificates of compliance, and set the “mediation guidelines.”

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Alternative Dispute Resolution (ADR) Updates, Civil Remedies Updates, Finance & Banking Updates, Commercial Real Estate Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Lane Powell PC | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »