HB 4204 required the governor to announce an extension of the moratorium 30 days before the moratorium expired on Sept. 30. By way of example, if a lender initiated judicial or non-judicial foreclosure proceedings on Feb. 1 but was set to foreclose on Aug. 1, the foreclosure is automatically void and may not be reinstated until Jan. 1 at the very earliest. Oregon Governor Kate Brown signed House Bill 4204 (HB 4204) into law on June 30, 2020. The new law protects borrowers from foreclosure and the effects of default which arise as a result of the COVID-19 pandemic. Governor Kate Brown has signed into law HB 4204, which imposes a foreclosure … The bill requires lenders to defer loan payments and refrain from enforcing default remedies on certain secured obligations during the “emergency period” beginning March 8, 2020, and ending September 30, 2020, unless modified by the governor. More specifically, unless a judgment was "issued or given" prior to March 8, a foreclosure is automatically void. Oregon Governor Kate Brown signed House Bill 4204 (HB 4204) into law on June 30, 2020. Because of the extension, borrowers can now give the notice up through Dec. 31, 2020, and have it apply to any missed payments during the entirety of the emergency period, dating back to March 8, 2020. HB 4204: Foreclosure Moratorium and Mandatory Payment Deferral. Published July 13, 2020 by Caulin M. Price, Attorney. Click "accept" below to confirm that you have read and understand this notice. EXTENDING HOUSE BILL 4204’S MORTGAGE FORECLOSURE MORATORIUM UNTIL DECEMBER 31, 2020 Since January 2020, the State of Oregon has been engaged in responding to the public health threat posed by the novel infectious coronavirus (COVID-19). Copyright © 1996–2020 Holland & Knight LLP. Spectrum: Partisan Bill (Democrat 17-0) Status: (Passed) 2020-07-07 - Chapter 4, (2020 Laws): Effective date June 30, 2020. Bill Title: Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. On August 31, Oregon Governor Kate Brown issued Executive Order 20-37, extending prohibitions on residential and commercial foreclosures in Oregon through December 31, 2020.This Order was issued under the Governor’s authority given by Oregon statutes and the recent Oregon House Bill 4204, which Governor Brown signed effective June 30. On June 20, 2020, Oregon Governor Kate Brown signed House Bill 4204 into law. Definitions. Deferred payments would be due at the end of the loan, unless the borrower and lenders determine alternate, agreeable terms. Establishes temporary limitations on lenders being able to enforce default remedies on obligations secured by mortgages, trust deeds, land sale contracts or other instruments. The hallmark of Holland & Knight's success has always been and continues to be legal work of the highest quality, performed by well prepared lawyers who revere their profession and are devoted to their clients. Real Estate Team summarizes impact of Oregon HB 4204. House Bill 4204: A companion of sorts to the eviction ban, this bill prohibits lenders from pursuing foreclosures against homeowners and other borrowers through Sept. 30. Spectrum: Partisan Bill (Democrat 17-0) Status: (Passed) 2020-07-07 - Chapter 4, (2020 Laws): Effective date June 30, 2020. During the special session held between June 24 and June 26, the Oregon legislature passed, and Governor Brown signed into law, HB 4204, which prohibits foreclosures in Oregon from March 8, 2020 until September 30, 2020. On June 30th, 2020, Oregon governor Kate Brown signed into law HB 4204, providing sweeping protections to mortgagors and putting a moratorium on foreclosure proceedings.This law also requires all lenders operating within the state to provide written notice by mail to every borrower by August 29, 2020 of the protections added by the bill. The new statute affects lenders of both commercial and residential loans secured by Oregon real estate. Legislators also passed House Bill 4204 Friday, which prohibits lenders from initiating foreclosures against homeowners and other borrowers through … There are specific distinctions as to the evidence a borrower must provide with the notice, depending upon whether the property is commercial or residential, the number of dwelling units (if residential) and whether the borrower has received funds under the Paycheck Protection Program (PPP). Breaking Ground: West Coast Real Estate and Land Use Blog, Deferral of any periodic payments due under a secured loan due to COVID-19 until the maturity date of the loan, Prohibition on charging penalties for late payments or other defaults, including (but not limited to) restrictions upon imposition of default interest, charges for inspections, appraisals or opinions of value, or initiation of cash management procedures, Prohibition on declaring defaults based on failure of a financial covenant such as maintenance of a specified net worth. the State of Oregon – House Bill 4204 Please accept this as notice of rights which may apply to you, as a borrower, under Oregon House Bill 4204, which became effective June 30, 2020. The statute's impact is not limited to a moratorium on foreclosures and contains the following restrictions on lenders during the emergency period: While the foreclosure moratorium is automatic under the statute, borrowers were required under HB 4204 to deliver notice within 60 days of the June 30 effective date to gain the benefit of the restrictions noted above. It is unclear whether HB 4204 applies to new loans. 1-800-332-2313 | 900 Court St. NE, Salem Oregon 97301, Staff Measure Summary / Impact Statements, Potential Conflicts of Interest/Vote Explanation Documents, (at the request of Joint Committee on the First Special Session of 2020). Please note that email communications to the firm through this website do not create an attorney-client relationship between you and the firm. Since the start of the COVID-19 pandemic, the State of Oregon and federal agencies have enacted various moratoria on residential and commercial evictions and foreclosures. House Bill 2001 aims to provide Oregonians with more housing choices, especially housing choices more people can afford. As the threat escalated, the State’s response elevated to meet the threat. Gov. HB 4204 applies to any loan secured by real estate in Oregon, consumer or commercial and irrespective of whether the lender is located in Oregon. Specifically, lenders authorized to do business in Oregon are required to provide their borrowers with written notice of their rights and accommodations under HB 4204 within 60 days of the June 30 effective date. House Bill 4204 was one of the most debated measures in the Legislature — passing in the House 39-18 and passing in the Senate 19-8. Judicial and Non-Judicial Foreclosures Prohibited HB 4204 prohibits lenders from foreclosing on consumer and commercial loans secured by real estate in Oregon during the “emergency period,” which runs from March 8, 2020, through September 30, 2020, unless extended by the Governor. Do not send any privileged or confidential information to the firm through this website. On June 30th, 2020, Oregon governor Kate Brown signed into law HB 4204, providing sweeping protections to mortgagors and putting a moratorium on foreclosure proceedings.This law also requires all lenders operating within the state to provide written notice by mail to every borrower by August 29, 2020 of the protections added by the bill. Oregon House Bill 4204 On June 30, 2020 the Oregon House Bill 4204 came into effect. Oregon State Legislature Building Hours: Monday - Friday, 8:00am - 5:00pm 1-800-332-2313 | 900 Court St. NE, Salem Oregon 97301 House Bill 4204 Establishes temporary limitations on lenders being able to enforce default … HB 4204 applies to any loan secured by real estate in Oregon, consumer or commercial and irrespective of whether the lender is located in Oregon. Oregon lawmakers passed House Bill 4204 in June, prohibiting banks from foreclosing on homeowners through September, seeking to establish protections for people caught up in … Kate Brown further extended the "emergency period," which dates retroactively to March 8, 2020, until Dec. 31, 2020, via Executive Order No. The new law protects borrowers from foreclosure and the effects of default which arise as a result of the COVID-19 pandemic. Gov. HB 4204 is currently subject to legal challenge on multiple fronts, including the Oregon Bankers Association and three community banks – Lewis & Clark Bank, Bank of Eastern Oregon and People's Bank of Commerce – in U.S. District Court for the District of Oregon, filed on Aug. 13. HB 4204 (a) in certain circumstances requires secured real estate lenders with Oregon real property collateral to defer installment payments due to the lender under the governing loan documents during what the law defines as the “emergency period” until the maturity date of the loan and limits the interest rate and fees that a lender may charge; and (b) prevents lenders from foreclosing on … HB 4204 is the first of its kind, and other states, particularly along the west coast, could follow suit. Update: Oregon’s Mortgage Foreclosure “Emergency Period” is now extended until December 31, 2020.  By Executive Order 20-37, Governor Kate Brown has extended the emergency period of the mortgage foreclosure moratorium enacted by HB 4204 until the end of 2020. Attorney Advertising. July 27, 2020 (*Updated October 27, 2020*), Holland & Knight West Coast Real Estate and Land Use Blog. It does not apply to loans secured by properties outside of Oregon, even if the lender is in Oregon. HB 4204 required the governor to announce an extension of the moratorium 30 days before the moratorium expired on Sept. 30. “Every Oregonian deserves a … On June 20, 2020, Oregon Governor Kate Brown signed House Bill 4204 into law. Loans subject to HB 4204 are those secured by Oregon commercial and residential real estate or personal property in Oregon that serves as a residence (e.g., manufactured/mobile homes, RVs, floating homes). In response to the effects of the COVID-19 pandemic, the Oregon legislature enacted House Bill 4204, dated July 7 and effective June 30, establishing temporary restrictions on commercial and residential lenders from the exercise of certain remedies through, at the earliest, Sept. 30, 2020. In addition to the protections provided within HB 4213 for tenants of rental properties, the Oregon Legislature also passed HB 4204 to provide protections for mortgage holders. Here is a link to Oregon Division of Financial Regulation Guidance for its 1-4 residential property licensees. The bill requires lenders to defer loan payments and refrain from enforcing default remedies on certain secured obligations during the “emergency period” beginning March 8, 2020, and ending September 30, 2020, unless modified by the governor. Specifically, lenders authorized to do business in Oregon were required to provide their borrowers with written notice of their rights and accommodations under HB 4204 within 60 days of the June 30 effective date. Legislators also passed House Bill 4204 Friday, which prohibits lenders from initiating foreclosures against homeowners and other borrowers through … Many may already know that the Oregon legislature passed HB 4204 affecting borrower defaults and foreclosures, which became effective on June 30, 2020. Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. Potential Conflicts of Interest/Vote Explanations. House Bill 4204: Directs lenders to defer both residential and commercial mortgage payments during the pandemic emergency period until September 30, 2020 if a borrower is unable to pay due to the COVID-19 pandemic. During the 2020 Special Session, the Oregon Legislature passed House Bill (HB) 4204 as a strategy to protect Oregonians from the effects of the Covid-19 pandemic. It applies to both residential and commercial real estate (and any personal property constituting a residence, such as a mobile home). Lenders should be careful to comply with the provisions of HB 4204, as borrowers have a private right of action to cover actual damages if suffering "an ascertainable loss of money or property" and may recover attorneys' fees and costs. “Every Oregonian … Emergency period: This is the period between March 8, 2020, and September 30, 2020, with an option to extend by executive order. Many may already know that the Oregon legislature passed HB 4204 affecting borrower defaults and foreclosures, which became effective on June 30, 2020. 20-37. HB 4204 is the first of its kind, and other states, particularly along the … The new statute affects lenders of both commercial and residential loans secured by Oregon real estate. As of August 31, The Governor of Oregon extended House Bill 4204 until the end of the year, effectively prohibiting commercial and residential foreclosures until 2021. Please visit the State of Oregon website to print a copy of [Chapter 4, (2020 Laws): Effective date June 30, 2020.] The COVID-19 pandemic has affected business in ways unseen before. The bill provides certain relief to borrowers who have suffered a loss of income related to the COVID-19 pandemic, if their loan is secured by Oregon real property. Here is a copy of the enrolled HB 4204. While the restrictions were initially slated to expire on Sept. 30, Gov. Summary (2020-07-07) Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. Notably, this Order is an extension, … Specifically, lenders authorized to do business in Oregon are required to provide their borrowers with written notice of their rights and accommodations under HB 4204 within 60 days of the June 30 effective date. Enrolled House Bill 4204 (HB 4204-A) Page 3 (b) Notwithstanding ORS 18.860 to 18.993 and except as provided in subsection (10) of this section, an execution sale of subject property may not occur during the emergency period. Bill Title: Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. House Bill 4204 (HB 4204) was signed into law on June 30, 2020, after a short, special session of the legislature. All lenders authorized to do business in Oregon must provide notice of the HB 4204 protections by mail to "all of the lender's borrowers" within 60 days following passage of the Act. HB 4204 also specifically contemplates the scenario where the borrower and lender negotiate an agreement to modify the loan in lieu of reliance on the statute. Most notably, HB 4204 prohibits any foreclosure, whether judicial or non-judicial, during the emergency period. Since the start of the COVID-19 pandemic, the State of Oregon and federal agencies have enacted various moratoria on residential and commercial evictions and foreclosures. There are very limited exceptions to the moratorium, specifically including tax foreclosures. for accommodation under HB 4204 by August 29, 2020. The law, passed by the 2019 Oregon Legislature, lets people build certain traditional housing types, like duplexes, in residential zones. If you hold a mortgage and are having difficulty making payments, from decrease in rental income or otherwise, we encourage you to reach out to your lender. House Bill 4204 is known as the “Foreclosure Moratorium;” however, that name is a misnomer because it does a lot more than halt foreclosures in the State of Oregon. In response to the effects of the COVID-19 pandemic, the Oregon legislature enacted House Bill 4204, dated July 7 and effective June 30, establishing temporary restrictions on commercial and residential lenders from the exercise of certain remedies through, at the earliest, Sept. 30, 2020. In response to the effects of the COVID-19 pandemic, the Oregon legislature enacted House Bill 4204, dated July 7 and effective June 30, establishing temporary … All rights reserved. The trio of banks joined the lawsuit because “the one-size-fits-all approach of House Bill 4204” could harm state-chartered banks that are based in Oregon, Navarro said in a statement. for accommodation under HB 4204 by August 29, 2020. Loans subject to HB 4204 are those secured by Oregon commercial and residential real estate or personal property in Oregon that serves as a residence (e.g., manufactured/mobile homes, RVs, floating homes). Details on Oregon HB 4204 (Oregon 2020 Special Session) - Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. Oregon lawmakers passed House Bill 4204 in June, prohibiting banks from foreclosing on homeowners through September, seeking to establish protections for people caught up in … the State of Oregon – House Bill 4204 Please accept this as notice of rights which may apply to you, as a borrower, under Oregon House Bill 4204, which became effective June 30, 2020. 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