Thursday, June 10, 2010

New foreclosure notice law for Oregon

(c) 2010 Benjamin D. Knaupp
Attorney at Law
Admitted in Oregon since 1997

On March 3rd of this year, Governor Ted Kulongoski signed into law a bill that will affect foreclosing lenders in Oregon.

The law is House Bill 3610, which adds several new requirements to the foreclosure process when a homeowner has requested a home loan modification from their lender. The law amends ORS 86.737 by requiring lenders to provide homeowners with an explanation of how the lender determined that the homeowner was not eligible for a home loan modification. It also requires an affidavit of compliance from the trustee conducting the sale.

Most of the changes to the legal requirements for foreclosures which were first enacted in 2009 were not slated to take effect until January 2, 2012. However this new law moves up the effective date to May 27th, 2010.

These new requirements will cause a lot of an worry and extra work for lenders conducting foreclosures, and there are bound to be some lenders that do not comply with all the new requirements. The legal effect of failure to comply with the new requirements is not specified in the laws. A trustee who fails to follow the procedures would certainly be exposed to a lawsuit for breach of its duties to the
lender, and possibly even to a homeowner who was damaged by the foreclosure.

I plan on exploring litigation strategies relating to the new laws for homeowners who have been damaged in a foreclosure action. The new requirements also will provide an opportunity to prevent a foreclosure sale from going forward by filing a legal action for an emergency injunction through the courts.

For further information please contact me. If you have a friend in danger of losing a home to foreclosure, direct them to watch my video explaining the 8 foreclosure questions in brief. If you live in Beaverton, Hillsboro, or Portland Oregon, give me a call with your questions or comments, or post a comment to this blog.


  1. IndyMac has been the Servicer on my mortgage since 2006. They are not named on ANY document in the Court Records. Including the Notice of Assignment of Deed, filed by OneWest Bank on 12/15/2010. (First an only menntion of OneWest) Neither Bank is on the Notice of Default and Election to Sell, filed by Regional Trustee Services Corp. on 12/17/2010. This is also the first time RTSC has been mentioned in any document.

    My mother has had a stroke, breast cancer, and a heart attack, all in the last 3 1/2 years. The phone they keep calling is in my mom's name and she explained her illness when asking them to stop. Today, I had to go to the Post Office to pick up 4 more Certified letters. These were from RTSC, copies of the above filing.

    Within the last year, my child support doubled, I was discharged from the National Guard when they learned I had diabetis, so lost that pay, I also pay for the full support, plus medication for a brother with Chrones.
    Things started going bad in 2007 when the city insisted I get on the sewer line. For years, I had paid sewer charges on my water bill? So I was forced to take out a $15,000 loan to pay for that.
    Then in August this year I started being sued by Medical Providers, because my wife keeps taking my daughter to Medical Providers who aren't covered by my Insurance, although I pay a set amount each month with my child support for such charges. Total, so far, is about $3,500.

    I applied for a MOD from IndyMac in September. In late November they notified me they hadn't received my check stubs, so needed them to finish the MOD Application. (The stubs were in the paperwork I sent?) I will send a new set but need to come up with enough money to send them certified mail.

    Neither my mom or I really need the added stress of the 3 to 6 calls a day from IndyMac. When my mom explained her illness and asked them to stop calling, since they aren't legally involved they told her that they can't stop calling because I am on their list, and they are just trying to help?

    Could you give me a ball park number of what it would cost for you to represent me in this?
    Dennis Bohatch
    9531 N. Adriatic
    Portland, OR 97203
    503 289 2714

    Thanks in advance for any help

  2. Great information! Very useful and impressive