Foreclosures in Oregon are about to change and possibly clog up the courts with 1,000’s of lawsuits. Here to talk with us about this new twist to the foreclosure story in Oregon is Nick Krautter from Keller Williams realty and sellpdx.com
Q. What this change that’s happening with foreclosures?
A. Most of the major banks are now using Judicial Foreclosure as opposed to the much more common Notice and Sale.
Q. What does that really mean for homeowners?
A. A judicial foreclosure is a lawsuit that goes through the court. Right now it takes 2-3 month to be heard but expect that to get much longer. There is no right to cure for back payments – you have to pay the whole loan off.
Q. Any other important differences with this new trend?
A. You can be liable for a deficiency for investment property or abandoned residences.
Q. Why the change?
A. Because banks were not recording transfers of title with the county in many cases there have been some foreclosures ruled invalid in Oregon. This makes title companies wary of insuring title on REO sales where titles transfers were not recorded. There is also a new rule that lenders must meet with borrowers in mediation in a notice and sale foreclosure. For those reasons the banks are opting for judicial foreclosure.