By Jeb Bladine • President / Publisher • 

Foreclosures going behind closed doors

State law, court decision causing foreclosures to move to courts

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Could we have a lawyer weigh in on this?
As someone familiar with the New York judicial process, this process has achieved the opposite of what your author is presenting.
Contrary to deficiencies being upheld, the biggies- Chase, Wells Fargo, Bof A, to name a few, are not only NOT going after deficiencies, but they are PAYING homeowners in the state (more and more) to either short sell or deed in lieu the fraudulent paperwork- I mean, property- in order to retire the fraud outside of the judicial system.
They appear to own nothing, and homeowners there, when aware, are in the drivers seat. The courts are NOT busier- in fact, due to the paperwork scrutiny, it's not uncommon for homeowners to remain in a house for YEARS with nothing more than collection calls from banks who appear to recognize their weak position. Most banks there have already submitted forgeries and fraud to the county records, and also to the courts at the start of the proceeding, and are BACKING OFF. They don't want to deal with an astute judge, and explain just why a fabricated document was submitted to the legal system.
If a lawyer could weigh in, it would give readers a better picture of what is happening in judicial states- Oregonians will now have the same microscope on the massive fraud, and can deal with the criminal banks accordingly.
Get ready for loads of successful short sales!

Jeb Bladine

Comments by “oliver72” likely are correct for situations when lenders don’t have the required legal paperwork in order. Also, a closer look at Oregon law reveals that there are other limitations on “deficiency judgments” that should be noted. It’s a complicated situation that we’re just learning about because almost all Oregon foreclosures have been “non-judicial,” thus not subject to deficiency judgments.

Oregon law allows deficiency judgments on home loans secured by a mortgage that involves just lender and borrower. But those judgments aren’t allowed in the “deed of trust” transactions that are more typical in original home loans by the national lenders. That protects many Oregonians from a deficiency judgment.

However, deficiency judgments are allowed on secondary home equity loans, and in situations where the property has been abandoned or converted to another use. Apparently, deficiencies also can be pursued after a short sale unless specifically prohibited in paperwork leading up to the short sale.
Like I said, it’s complicated. I think, after more research, that the column overstates the likelihood of deficiency judgments in Oregon, although they still can occur. There is a lot of legalese to read through in ORS 86, and here’s a link to an interesting discussion of the issues by an Oregon attorney:

Jeb Bladine

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