Oregon passed a bill enacting a temporary COVID-19 related foreclosure moratorium. Under the bill, a mortgage lender or servicer may not foreclose a property (either nonjudicially or judicially) during the emergency period. The emergency period extends from December 31, 2020 to June 30, 2021 (however, the Governor is permitted to extend the emergency period until December 31, 2021). The foreclosure moratorium does not apply to vacant or abandoned property.
The bill also prohibits a lender or servicer from treating as a default a borrower’s failure to make a payment (or pay any other amount owed in connection with the loan) if, during the emergency period, the borrower notifies the lender or servicer that the borrower cannot make the payment due to a loss of income that is related to the COVID-19 pandemic. If the borrower provides such notification, the lender or servicer must defer the amount owed.
In addition, the bill:
- Amends exemptions to the foreclosure Resolution Conference Program;
- Permits a lender, servicer and borrower to participate in a foreclosure resolution conference via remote audio or video communication (previously required to participate in person); and
- Modifies the content of Notice of Resolution Conference.
The bill went into effect June 2, 2021.
See Oregon State Legislature website for the full text of the Statue: https://olis.oregonlegislature.gov/liz/2021R1/Downloads/MeasureDocument/HB2009/Enrolled
