74th OREGON LEGISLATIVE ASSEMBLY--2008 Special Session
Enrolled
House Bill 3630
Sponsored by COMMITTEE ON ELECTIONS, ETHICS AND RULES (at the
request of House Interim Committee on Consumer Protection)
CHAPTER ................
AN ACT
Relating to interests in residential real properties; creating
new provisions; amending ORS 646.607 and 646.608; and declaring
an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 6 and 9 to 14 of this 2008 Act
may be cited as the Mortgage Rescue Fraud Protection Act. + }
SECTION 2. { + As used in sections 2 to 6 of this 2008 Act:
(1) 'Default' means having one or more homeowner obligations in
arrears to an extent that a notice of default could properly be
recorded against the residence.
(2) 'Family' means a spouse, domestic partner, parent,
stepparent, grandparent, child, stepchild, grandchild, sibling,
aunt, uncle, cousin or in-law.
(3) 'Foreclosure consultant,' except as provided in section 3
of this 2008 Act, means a person that directly or through
association with another makes a solicitation, representation or
offer to a homeowner to perform, for or with the intent to
receive compensation from or on behalf of the homeowner, a
service that the solicitation, representation or offer indicates
will accomplish one or more of the following:
(a) Prevent, postpone or stop a foreclosure sale.
(b) Obtain a forbearance from a beneficiary or mortgagee.
(c) Assist the homeowner in exercising a right of redemption.
(d) Obtain an extension of the period within which the
homeowner may reinstate the homeowner's obligation.
(e) Obtain the waiver of an acceleration clause that is:
(A) Contained in a promissory note or contract; and
(B) Secured by or contained in a deed of trust for, or mortgage
on, a residence in foreclosure or in default.
(f) Assist the homeowner in obtaining a loan or advance of
funds.
(g) Avoid or ameliorate an impairment of the homeowner's credit
resulting from a recorded notice of foreclosure or default.
(4) 'Foreclosure consulting contract' means an agreement
between a foreclosure consultant and a homeowner for the
provision of services by a foreclosure consultant in regard to a
residence in foreclosure or in default.
(5) 'Homeowner' means the record owner of a residence.
(6) 'Residence in foreclosure' means residential real property:
(a) Consisting of one to four single-family dwelling units;
(b) On which the owner occupies a dwelling unit; and
Enrolled House Bill 3630 (HB 3630-B) Page 1
(c) Against which a notice of default has been recorded. + }
SECTION 3. { + The following are not foreclosure consultants
for purposes of sections 2 to 6 of this 2008 Act:
(1) An individual licensed to practice law in this state, if
performing services within an attorney-client relationship.
(2) A person that holds or is owed an obligation that is
secured by a lien on a residence in foreclosure or default, if
performing services in connection with the obligation or lien.
(3) A person doing business under authority of an Oregon or
federal law regulating banks, trust companies, savings and loan
associations, credit unions or insurance companies, or as a
licensee under ORS chapter 725, if performing business services
within the scope of that authority or license.
(4) A subsidiary, affiliate or agent of a person described in
subsection (3) of this section, if performing business services
within the scope of the person's authority or license as the
person's subsidiary, affiliate or agent.
(5) The judgment creditor of a homeowner, if the creditor's
claim accrued before a notice of sale was sent to the creditor
under ORS 86.740.
(6) A title insurer authorized to conduct business in Oregon or
an insurance producer licensed to conduct business in Oregon, if
performing title insurance or settlement services within the
scope of that authority or license.
(7) A mortgage broker or mortgage lender licensed under ORS
chapter 59 to conduct business in Oregon, if acting within the
scope of that license.
(8) A real estate licensee under ORS 696.022 or an escrow agent
licensed under ORS 696.511, if acting within the scope of that
license.
(9) A tax-exempt organization that offers counseling or advice
to homeowners in foreclosure if the organization:
(a) Is not directly or indirectly related to for-profit lenders
or foreclosure purchasers;
(b) Does not contract to provide services to or receive
services from for-profit lenders or foreclosure purchasers; and
(c) Has provided counseling or advice to homeowners for five
years or more.
(10) A creditors' committee, trustee or debtor in possession
participating in a proceeding under the jurisdiction of the
United States Bankruptcy Court.
(11) Any person whose employment with regard to a residential
real property matter under the jurisdiction of the United States
Bankruptcy Court is approved by order of the bankruptcy court.
(12) A person that is a member of the homeowner's family or is
owned or controlled by a member of the homeowner's family. + }
SECTION 4. { + (1) A written foreclosure consulting contract
is required for any services that a foreclosure consultant
provides to a homeowner. A foreclosure consultant shall provide a
homeowner with a copy of the foreclosure consulting contract at
least 24 hours before the homeowner signs the contract. The
foreclosure consulting contract must:
(a) Be written in a language that is spoken by the homeowner
and that was used in discussions between the homeowner and
foreclosure consultant to describe the foreclosure consultant's
services or to negotiate the contract and, except as provided in
paragraph (f) of this subsection, be printed in at least 12-point
type.
(b) Fully disclose the nature and extent of the services the
foreclosure consultant is to provide.
Enrolled House Bill 3630 (HB 3630-B) Page 2
(c) Fully disclose the terms and total amount of any
compensation the foreclosure consultant or a person working in
association with the foreclosure consultant is to receive.
(d) Be dated and personally signed by the homeowner and the
foreclosure consultant.
(e) Contain on the first page the name and address, facsimile
number and electronic mail address of the foreclosure consultant
to which a notice of cancellation may be delivered.
(f) Contain, in immediate proximity to the space reserved for
the homeowner's signature, a notice in substantially the
following form and printed in at least 14-point boldfaced
type: + }
________________________________________________________________
{ +
NOTICE REQUIRED BY OREGON LAW + }
{ + THIS IS AN IMPORTANT LEGAL CONTRACT AND COULD RESULT IN THE
LOSS OF YOUR HOME. YOU SHOULD CONTACT A LAWYER OR OTHER
PROFESSIONAL ADVISER BEFORE SIGNING. + }
{ + YOU MAY CANCEL THIS CONTRACT AT ANY TIME. + }
{ + If you cancel, you must pay for any services that were
provided under this contract before the cancellation and repay
any money spent on your behalf under this contract. You have 60
days after cancellation to pay for services and to repay any
money spent on your behalf. You must also pay any interest
allowed by this contract, which may not exceed nine percent per
year. + }
{ + __________ (name of foreclosure consultant) or any person
working with __________ (name of foreclosure consultant) CANNOT
ask you to sign or have you sign any lien, mortgage or deed that
transfers an interest in your home or property to __________
(name of foreclosure consultant) or any person working with
__________ (name of foreclosure consultant). + }
{ + __________ (name of foreclosure consultant) or any person
working with __________ (name of foreclosure consultant) CANNOT
guarantee you that they will be able to refinance your home or
arrange for you to keep your home. + }
{ + The law requires that this contract contain the entire
agreement. You should not rely on any other written or oral
agreement or promise. + }
________________________________________________________________
{ + (2) A foreclosure consulting contract provision is void
if the provision provides for the homeowner to:
(a) Waive any rights of the homeowner under sections 2 to 6 of
this 2008 Act;
(b) Consent to jurisdiction for litigation or dispute
resolution in a state other than Oregon;
(c) Consent to a choice of laws provision that applies the laws
of a state other than Oregon;
(d) Consent to venue in a county other than the county in which
the residence in foreclosure or default is located; or
Enrolled House Bill 3630 (HB 3630-B) Page 3
(e) Pay any costs or fees incurred by the foreclosure
consultant to enforce the contract, other than court costs and
filing fees incurred in a successful circuit court action. + }
SECTION 5. { + (1) In addition to any other cancellation or
rescission right, a homeowner may cancel a foreclosure consulting
contract as provided under this section at any time.
(2) Cancellation under this section occurs when the homeowner
gives written notice of cancellation to the foreclosure
consultant:
(a) At a physical address specified in the foreclosure
consulting contract; or
(b) At a facsimile number or electronic mail address specified
in the foreclosure consulting contract.
(3)(a) If the homeowner gives written notice of cancellation
under this section by mail, the notice is effective when
deposited in the United States mail with the proper address and
postage.
(b) If the homeowner gives written notice of cancellation under
this section by facsimile or electronic mail, the notice is
effective upon receipt. Proof of a transmission by the homeowner
to the facsimile number or electronic mail address specified in
the foreclosure consulting contract creates a rebuttable
presumption that the foreclosure consultant received the notice
at the time of the transmission.
(4) A homeowner who cancels or breaches a foreclosure
consulting contract under this section shall, no later than 60
days after the cancellation or breach, pay for any services
performed in good faith under the contract by or on behalf of the
foreclosure consultant prior to the cancellation or breach and
repay any moneys paid or advanced under the contract by or on
behalf of the foreclosure consultant. The homeowner shall also
pay any interest allowed by the foreclosure consulting contract,
not to exceed nine percent per year.
(5) Failure of the homeowner to repay moneys as provided in
subsection (4) of this section does not invalidate the
cancellation of the foreclosure consulting contract.
(6) When both parties have signed the foreclosure consulting
contract, the foreclosure consultant shall immediately provide
the homeowner with a signed and dated copy of the contract and a
cancellation form. The cancellation form must:
(a) Be in duplicate;
(b) Be on a separate sheet of paper attached to the foreclosure
consulting contract;
(c) Be easily detachable; and
(d) Contain a statement in substantially the following form and
printed in at least 14-point boldfaced type: + }
________________________________________________________________
{ +
HOW TO CANCEL + }
{ + _____ (Date of Contract) + }
{ + YOU MAY CANCEL THIS CONTRACT WITHOUT PENALTY AT ANY
TIME. + }
{ + To cancel the contract, mail or deliver a signed and dated
copy of this Notice of Cancellation, or write something saying
you want to cancel, and send it to __________ (name of
foreclosure consultant) at __________ (address of foreclosure
Enrolled House Bill 3630 (HB 3630-B) Page 4
consultant). You can cancel by fax or e-mail. Send any
cancellation by fax to __________ or any cancellation by e-mail
to __________. + }
{ + If you cancel, you must pay for any services that were
provided under the contract before the cancellation and repay any
money spent on your behalf under the contract. You have 60 days
after cancellation to pay for services and to repay any money
spent on your behalf. You must also pay any interest allowed
under the contract, which may not exceed nine percent per
year. + }
{ +
NOTICE OF CANCELLATION + }
{ + TO: __________ (name of foreclosure consultant) + }
{ + __________ (address, fax or e-mail of foreclosure
consultant) + }
{ + I cancel this contract. + }
{ + Date: _____ + }
{ + Your (homeowner's) printed name and address: __________ + }
{ + Your (homeowner's) signature: __________ + }
________________________________________________________________
{ + (7) A written notice of cancellation under this section
is sufficient, however expressed, if the notice indicates the
intent of the homeowner to cancel the foreclosure consulting
contract. The contract may not require the homeowner to use the
notice of cancellation form set forth in subsection (6) of this
section. + }
SECTION 6. { + A foreclosure consultant may not:
(1) Claim, demand, charge, collect or receive any compensation
from a homeowner unless the foreclosure consultant has performed
in good faith under the contract:
(a) Each service the foreclosure consultant contracted to
perform for the homeowner; or
(b) Each service to be compensated, prior to the homeowner
canceling or breaching the contract.
(2) Claim, demand, charge, collect or receive interest or other
compensation that exceeds nine percent per year on any services
performed, any loan by the foreclosure consultant to the
homeowner or any moneys paid or advanced to the homeowner under
the foreclosure consulting contract.
(3) Take a wage assignment, lien on real or personal property
or other security for the payment of compensation.
(4) Receive consideration from a third party in connection with
services provided by a foreclosure consultant to a homeowner,
unless the consideration is first fully disclosed in writing to
the homeowner.
(5) Directly or indirectly acquire an interest in a residence
in foreclosure or default transferred by a homeowner with whom
the foreclosure consultant has contracted, including any interest
transferred to or through a member of the foreclosure
consultant's family or to or through a subsidiary, affiliate or
related entity in which the foreclosure consultant or a member of
Enrolled House Bill 3630 (HB 3630-B) Page 5
the foreclosure consultant's family is a primary member,
shareholder or owner.
(6) Receive compensation from a third party for facilitating or
arranging for entry into an equity conveyance as defined in
section 9 of this 2008 Act by a homeowner with whom the
foreclosure consultant has contracted.
(7) Facilitate or arrange for entry into an equity conveyance
as defined in section 9 of this 2008 Act by a homeowner with whom
the foreclosure consultant has contracted, if the foreclosure
consultant knows or should know that the equity purchaser has
failed to comply with section 11 (1) of this 2008 Act.
(8) Take a power of attorney from a homeowner except for the
purpose of obtaining or inspecting documents.
(9) Induce or attempt to induce any homeowner to enter into a
foreclosure consulting contract that does not comply in all
respects with sections 2 to 6 of this 2008 Act.
(10) Directly or by implication make a statement or engage in
conduct that is false, deceptive, misleading or likely to cause
confusion or misunderstanding regarding a:
(a) Foreclosure consultant service;
(b) Foreclosure consulting contract; or
(c) Residence in foreclosure or default. + }
SECTION 7. ORS 646.608, as operative until July 1, 2008, is
amended to read:
646.608. (1) A person engages in an unlawful practice when in
the course of the person's business, vocation or occupation the
person does any of the following:
(a) Passes off real estate, goods or services as those of
another.
(b) Causes likelihood of confusion or of misunderstanding as to
the source, sponsorship, approval, or certification of real
estate, goods or services.
(c) Causes likelihood of confusion or of misunderstanding as to
affiliation, connection, or association with, or certification
by, another.
(d) Uses deceptive representations or designations of
geographic origin in connection with real estate, goods or
services.
(e) Represents that real estate, goods or services have
sponsorship, approval, characteristics, ingredients, uses,
benefits, quantities or qualities that they do not have or that a
person has a sponsorship, approval, status, qualification,
affiliation, or connection that the person does not have.
(f) Represents that real estate or goods are original or new if
they are deteriorated, altered, reconditioned, reclaimed, used or
secondhand.
(g) Represents that real estate, goods or services are of a
particular standard, quality, or grade, or that real estate or
goods are of a particular style or model, if they are of another.
(h) Disparages the real estate, goods, services, property or
business of a customer or another by false or misleading
representations of fact.
(i) Advertises real estate, goods or services with intent not
to provide them as advertised, or with intent not to supply
reasonably expectable public demand, unless the advertisement
discloses a limitation of quantity.
(j) Makes false or misleading representations of fact
concerning the reasons for, existence of, or amounts of price
reductions.
Enrolled House Bill 3630 (HB 3630-B) Page 6
(k) Makes false or misleading representations concerning credit
availability or the nature of the transaction or obligation
incurred.
(L) Makes false or misleading representations relating to
commissions or other compensation to be paid in exchange for
permitting real estate, goods or services to be used for model or
demonstration purposes or in exchange for submitting names of
potential customers.
(m) Performs service on or dismantles any goods or real estate
when not authorized by the owner or apparent owner thereof.
(n) Solicits potential customers by telephone or door to door
as a seller unless the person provides the information required
under ORS 646.611.
(o) In a sale, rental or other disposition of real estate,
goods or services, gives or offers to give a rebate or discount
or otherwise pays or offers to pay value to the customer in
consideration of the customer giving to the person the names of
prospective purchasers, lessees, or borrowers, or otherwise
aiding the person in making a sale, lease, or loan to another
person, if earning the rebate, discount or other value is
contingent upon occurrence of an event subsequent to the time the
customer enters into the transaction.
(p) Makes any false or misleading statement about a prize,
contest or promotion used to publicize a product, business or
service.
(q) Promises to deliver real estate, goods or services within a
certain period of time with intent not to deliver them as
promised.
(r) Organizes or induces or attempts to induce membership in a
pyramid club.
(s) Makes false or misleading representations of fact
concerning the offering price of, or the person's cost for real
estate, goods or services.
(t) Concurrent with tender or delivery of any real estate,
goods or services fails to disclose any known material defect or
material nonconformity.
(u) Engages in any other unfair or deceptive conduct in trade
or commerce.
(v) Violates any of the provisions relating to auction sales,
auctioneers or auction marts under ORS 698.640, whether in a
commercial or noncommercial situation.
(w) Manufactures mercury fever thermometers.
(x) Sells or supplies mercury fever thermometers unless the
thermometer is required by federal law, or is:
(A) Prescribed by a person licensed under ORS chapter 677; and
(B) Supplied with instructions on the careful handling of the
thermometer to avoid breakage and on the proper cleanup of
mercury should breakage occur.
(y) Sells a thermostat that contains mercury unless the
thermostat is labeled in a manner to inform the purchaser that
mercury is present in the thermostat and that the thermostat may
not be disposed of until the mercury is removed, reused, recycled
or otherwise managed to ensure that the mercury does not become
part of the solid waste stream or wastewater. For purposes of
this paragraph, 'thermostat' means a device commonly used to
sense and, through electrical communication with heating, cooling
or ventilation equipment, control room temperature.
(z) Sells or offers for sale a motor vehicle manufactured after
January 1, 2006, that contains mercury light switches.
Enrolled House Bill 3630 (HB 3630-B) Page 7
(aa) Violates the provisions of ORS 803.375, 803.385 or 815.410
to 815.430.
(bb) Violates ORS 646A.070 (1).
(cc) Violates any requirement of ORS 646A.030 to 646A.040.
(dd) Violates the provisions of ORS 128.801 to 128.898.
(ee) Violates ORS 646.883 or 646.885.
(ff) Violates any provision of ORS 646A.020.
(gg) Violates ORS 646.569.
(hh) Violates the provisions of ORS 646A.142.
(ii) Violates ORS 646A.360.
(jj) Violates ORS 646.553 or 646.557 or any rule adopted
pursuant thereto.
(kk) Violates ORS 646.563.
(LL) Violates ORS 759.690 or any rule adopted pursuant thereto.
(mm) Violates the provisions of ORS 759.705, 759.710 and
759.720 or any rule adopted pursuant thereto.
(nn) Violates ORS 646A.210 or 646A.214.
(oo) Violates any provision of ORS 646A.124 to 646A.134.
(pp) Violates ORS 646A.254.
(qq) Violates ORS 646A.095.
(rr) Violates ORS 822.046.
(ss) Violates ORS 128.001.
(tt) Violates ORS 646.649 (2) to (4).
(uu) Violates ORS 646A.090 (2) to (4).
(vv) Violates ORS 87.686.
(ww) Violates ORS 646.651.
(xx) Violates ORS 646A.362.
(yy) Violates ORS 646A.052 or any rule adopted under ORS
646A.052 or 646A.054.
(zz) Violates ORS 180.440 (1).
(aaa) Commits the offense of acting as a vehicle dealer without
a certificate under ORS 822.005.
(bbb) Violates ORS 87.007 (2) or (3).
(ccc) Violates ORS 92.405 (1), (2) or (3).
(ddd) Engages in an unlawful practice under ORS 646.648.
(eee) Violates ORS 646A.365.
(fff) Violates ORS 98.854 or 98.858 or a rule adopted under ORS
98.864.
(ggg) Sells a gift card in violation of ORS 646A.276.
(hhh) Violates ORS 646A.102, 646A.106 or 646A.108.
{ + (iii) Violates a provision of sections 2 to 6 of this
2008 Act. + }
(2) A representation under subsection (1) of this section or
ORS 646.607 may be any manifestation of any assertion by words or
conduct, including, but not limited to, a failure to disclose a
fact.
(3) In order to prevail in an action or suit under ORS 646.605
to 646.652, a prosecuting attorney need not prove competition
between the parties or actual confusion or misunderstanding.
(4) An action or suit may not be brought under subsection
(1)(u) of this section unless the Attorney General has first
established a rule in accordance with the provisions of ORS
chapter 183 declaring the conduct to be unfair or deceptive in
trade or commerce.
(5) Notwithstanding any other provision of ORS 646.605 to
646.652, if an action or suit is brought under subsection (1)(zz)
of this section by a person other than a prosecuting attorney,
relief is limited to an injunction and the prevailing party may
be awarded reasonable attorney fees.
SECTION 8. ORS 646.608 is amended to read:
Enrolled House Bill 3630 (HB 3630-B) Page 8
646.608. (1) A person engages in an unlawful practice when in
the course of the person's business, vocation or occupation the
person does any of the following:
(a) Passes off real estate, goods or services as those of
another.
(b) Causes likelihood of confusion or of misunderstanding as to
the source, sponsorship, approval, or certification of real
estate, goods or services.
(c) Causes likelihood of confusion or of misunderstanding as to
affiliation, connection, or association with, or certification
by, another.
(d) Uses deceptive representations or designations of
geographic origin in connection with real estate, goods or
services.
(e) Represents that real estate, goods or services have
sponsorship, approval, characteristics, ingredients, uses,
benefits, quantities or qualities that they do not have or that a
person has a sponsorship, approval, status, qualification,
affiliation, or connection that the person does not have.
(f) Represents that real estate or goods are original or new if
they are deteriorated, altered, reconditioned, reclaimed, used or
secondhand.
(g) Represents that real estate, goods or services are of a
particular standard, quality, or grade, or that real estate or
goods are of a particular style or model, if they are of another.
(h) Disparages the real estate, goods, services, property or
business of a customer or another by false or misleading
representations of fact.
(i) Advertises real estate, goods or services with intent not
to provide them as advertised, or with intent not to supply
reasonably expectable public demand, unless the advertisement
discloses a limitation of quantity.
(j) Makes false or misleading representations of fact
concerning the reasons for, existence of, or amounts of price
reductions.
(k) Makes false or misleading representations concerning credit
availability or the nature of the transaction or obligation
incurred.
(L) Makes false or misleading representations relating to
commissions or other compensation to be paid in exchange for
permitting real estate, goods or services to be used for model or
demonstration purposes or in exchange for submitting names of
potential customers.
(m) Performs service on or dismantles any goods or real estate
when not authorized by the owner or apparent owner thereof.
(n) Solicits potential customers by telephone or door to door
as a seller unless the person provides the information required
under ORS 646.611.
(o) In a sale, rental or other disposition of real estate,
goods or services, gives or offers to give a rebate or discount
or otherwise pays or offers to pay value to the customer in
consideration of the customer giving to the person the names of
prospective purchasers, lessees, or borrowers, or otherwise
aiding the person in making a sale, lease, or loan to another
person, if earning the rebate, discount or other value is
contingent upon occurrence of an event subsequent to the time the
customer enters into the transaction.
(p) Makes any false or misleading statement about a prize,
contest or promotion used to publicize a product, business or
service.
Enrolled House Bill 3630 (HB 3630-B) Page 9
(q) Promises to deliver real estate, goods or services within a
certain period of time with intent not to deliver them as
promised.
(r) Organizes or induces or attempts to induce membership in a
pyramid club.
(s) Makes false or misleading representations of fact
concerning the offering price of, or the person's cost for real
estate, goods or services.
(t) Concurrent with tender or delivery of any real estate,
goods or services fails to disclose any known material defect or
material nonconformity.
(u) Engages in any other unfair or deceptive conduct in trade
or commerce.
(v) Violates any of the provisions relating to auction sales,
auctioneers or auction marts under ORS 698.640, whether in a
commercial or noncommercial situation.
(w) Manufactures mercury fever thermometers.
(x) Sells or supplies mercury fever thermometers unless the
thermometer is required by federal law, or is:
(A) Prescribed by a person licensed under ORS chapter 677; and
(B) Supplied with instructions on the careful handling of the
thermometer to avoid breakage and on the proper cleanup of
mercury should breakage occur.
(y) Sells a thermostat that contains mercury unless the
thermostat is labeled in a manner to inform the purchaser that
mercury is present in the thermostat and that the thermostat may
not be disposed of until the mercury is removed, reused, recycled
or otherwise managed to ensure that the mercury does not become
part of the solid waste stream or wastewater. For purposes of
this paragraph, 'thermostat' means a device commonly used to
sense and, through electrical communication with heating, cooling
or ventilation equipment, control room temperature.
(z) Sells or offers for sale a motor vehicle manufactured after
January 1, 2006, that contains mercury light switches.
(aa) Violates the provisions of ORS 803.375, 803.385 or 815.410
to 815.430.
(bb) Violates ORS 646A.070 (1).
(cc) Violates any requirement of ORS 646A.030 to 646A.040.
(dd) Violates the provisions of ORS 128.801 to 128.898.
(ee) Violates ORS 646.883 or 646.885.
(ff) Violates any provision of ORS 646A.020.
(gg) Violates ORS 646.569.
(hh) Violates the provisions of ORS 646A.142.
(ii) Violates ORS 646A.360.
(jj) Violates ORS 646.553 or 646.557 or any rule adopted
pursuant thereto.
(kk) Violates ORS 646.563.
(LL) Violates ORS 759.690 or any rule adopted pursuant thereto.
(mm) Violates the provisions of ORS 759.705, 759.710 and
759.720 or any rule adopted pursuant thereto.
(nn) Violates ORS 646A.210 or 646A.214.
(oo) Violates any provision of ORS 646A.124 to 646A.134.
(pp) Violates ORS 646A.254.
(qq) Violates ORS 646A.095.
(rr) Violates ORS 822.046.
(ss) Violates ORS 128.001.
(tt) Violates ORS 646.649 (2) to (4).
(uu) Violates ORS 646A.090 (2) to (4).
(vv) Violates ORS 87.686.
(ww) Violates ORS 646.651.
Enrolled House Bill 3630 (HB 3630-B) Page 10
(xx) Violates ORS 646A.362.
(yy) Violates ORS 646A.052 or any rule adopted under ORS
646A.052 or 646A.054.
(zz) Violates ORS 180.440 (1).
(aaa) Commits the offense of acting as a vehicle dealer without
a certificate under ORS 822.005.
(bbb) Violates ORS 87.007 (2) or (3).
(ccc) Violates ORS 92.405 (1), (2) or (3).
(ddd) Engages in an unlawful practice under ORS 646.648.
(eee) Violates ORS 646A.365.
(fff) Violates ORS 98.854 or 98.858 or a rule adopted under ORS
98.864.
(ggg) Sells a gift card in violation of ORS 646A.276.
(hhh) Violates ORS 646A.102, 646A.106 or 646A.108.
(iii) Violates ORS 646A.430 to 646A.450.
{ + (jjj) Violates a provision of sections 2 to 6 of this
2008 Act. + }
(2) A representation under subsection (1) of this section or
ORS 646.607 may be any manifestation of any assertion by words or
conduct, including, but not limited to, a failure to disclose a
fact.
(3) In order to prevail in an action or suit under ORS 646.605
to 646.652, a prosecuting attorney need not prove competition
between the parties or actual confusion or misunderstanding.
(4) An action or suit may not be brought under subsection
(1)(u) of this section unless the Attorney General has first
established a rule in accordance with the provisions of ORS
chapter 183 declaring the conduct to be unfair or deceptive in
trade or commerce.
(5) Notwithstanding any other provision of ORS 646.605 to
646.652, if an action or suit is brought under subsection (1)(zz)
of this section by a person other than a prosecuting attorney,
relief is limited to an injunction and the prevailing party may
be awarded reasonable attorney fees.
SECTION 9. { + As used in sections 9 to 14 of this 2008 Act:
(1) 'Bona fide purchaser' means a person that purchases a
residential real property from an equity purchaser:
(a) For valuable consideration;
(b) In good faith;
(c) Without knowledge of any continuing right to, or equity in,
the property by the equity seller; and
(d) Without knowledge of any violation of sections 9 to 14 of
this 2008 Act by the equity purchaser regarding the property.
(2) 'Business day' does not mean a Saturday or a legal holiday
described in ORS 187.010 or 187.020.
(3) 'Equity conveyance':
(a) Means a transaction that involves:
(A) The transfer of an interest in a residence in foreclosure
by an equity seller to an equity purchaser, or to another person
acting in association with the equity purchaser, that allows the
equity purchaser or other person to obtain legal or equitable
title to all or part of the residential real property; and
(B) A subsequent conveyance, or agreement for a subsequent
conveyance, of an interest in the residential real property from
the equity purchaser or person acting in association with the
equity purchaser to the equity seller to allow the equity seller
to possess the property during, or after termination of, the
foreclosure process.
Enrolled House Bill 3630 (HB 3630-B) Page 11
(b) Does not mean a transfer of interest by means of a
nonjudicial foreclosure sale or by means of a sheriff's sale or
other judicial foreclosure action.
(4) 'Equity conveyance contract' means a written contract
between an equity seller and an equity purchaser that contains an
agreement for an equity conveyance.
(5) 'Equity purchaser,' except as provided in section 10 of
this 2008 Act, means a person that enters into an equity
conveyance that transfers to the person, or to another acting in
association with the person, an interest in residential real
property sufficient to allow obtaining legal or equitable title
to all or part of the property.
(6) 'Equity recapture payment' means the resale price for a
property, less the following:
(a) Amounts owing as of the closing of the resale for liens or
other encumbrances created or suffered by the equity seller.
(b) Amounts paid after the transfer of interest in the property
by the equity seller and before the closing of the resale on
liens or other encumbrances created or suffered by the equity
seller.
(c) Cash received by the equity seller from the equity
purchaser under the equity conveyance contract.
(d) Title, escrow and other customary closing costs incurred by
the equity purchaser under the equity conveyance contract or
because of the resale.
(e) Real estate commissions and charges incurred by the equity
purchaser under the equity conveyance contract or because of the
resale.
(f) Charges for prorated taxes and homeowner association dues,
attributable to a period of time prior to the transfer of
interest in the property by the equity seller.
(g) Attorney fees incurred by the equity purchaser under the
equity conveyance contract or because of the resale.
(h) Reimbursement of actual repair and maintenance expenses.
(i) Reimbursement for the construction of improvements to the
property.
(7) 'Equity seller' means a natural person who is the record
owner of a residence in foreclosure at the time an interest in
the residence is transferred under an equity conveyance to an
equity purchaser or to a person acting in association with an
equity purchaser.
(8) 'Primary housing expenses' means the total amount required
to pay regular principal, interest, rent, utilities, hazard
insurance, real estate taxes and association dues on a
residential real property.
(9) 'Resale' means a sale by an equity purchaser to a bona fide
purchaser of residential real property that is the subject of an
equity conveyance contract.
(10) 'Resale price' means the gross sale price of a residential
real property upon resale.
(11) 'Residence in foreclosure' means residential real
property:
(a) Consisting of one to four single-family dwelling units;
(b) On which the owner occupies a dwelling unit; and
(c) Against which a notice of default has been recorded.
(12) 'Settlement agent' means a provider of settlement services
who:
(a) Is a licensed escrow agent, title insurance agent or
attorney; and
Enrolled House Bill 3630 (HB 3630-B) Page 12
(b) Is not the equity purchaser or an employee or associate of
the equity purchaser.
(13) 'Settlement conference' means an in-person meeting between
an equity seller and a settlement agent:
(a) For the purpose of completing documents incident to the
transfer of an interest as part of an equity conveyance; and
(b) During which the settlement agent provides the equity
seller with the HUD-1 settlement statement used by the United
States Department of Housing and Urban Development. + }
SECTION 10. { + The following are not equity purchasers for
purposes of sections 9 to 14 of this 2008 Act:
(1) A party to a deed in lieu of foreclosure.
(2) A creditors' committee, trustee or debtor in possession
participating in a proceeding under the jurisdiction of the
United States Bankruptcy Court.
(3) Any person whose employment with regard to a residential
real property matter under the jurisdiction of the United States
Bankruptcy Court is approved by order of the bankruptcy court.
(4) A family or living trust in which the equity seller is the
beneficiary or a member of the beneficiary. + }
SECTION 11. { + (1) A written contract is required for every
equity conveyance. An equity purchaser shall provide an equity
seller with a copy of the equity conveyance contract at least 24
hours before the equity seller signs the contract. The equity
conveyance contract must:
(a) Be written in a language that is spoken by the equity
seller and that was used in discussions between the equity seller
and equity purchaser to describe the equity purchaser's services
or to negotiate the terms of the contract and, except as provided
in paragraph (f) of this subsection, be printed in at least
12-point type;
(b) Contain the entire agreement of the parties;
(c) Be dated and personally signed by the equity seller and the
equity purchaser and witnessed by a notary public;
(d) Contain on the first page the name and address, facsimile
number and electronic mail address of the settlement agent to
which a notice of cancellation may be delivered;
(e) Describe in detail the terms of the equity conveyance
including:
(A) The name and business address, and any telephone number,
facsimile number and electronic mail address, of the person to
whom the equity seller will transfer an interest in the residence
in foreclosure;
(B) The address of the residence in foreclosure;
(C) The total consideration the equity purchaser and any other
party are to give as a result of the transfer of interest;
(D) The time at which the interest is to be transferred to the
equity purchaser or other person and the terms of the transfer;
(E) Any financial or legal obligations that the equity seller
may remain subject to, including a description of any mortgages,
liens or other obligations that will remain in place;
(F) Any services the equity purchaser will perform for the
equity seller before or after the transfer of interest;
(G)(i) The terms of any post-transfer conveyance or agreement
for a conveyance to the equity seller to allow the equity seller
to remain in the home, including but not limited to the terms of
any rental agreement, repurchase agreement, contract for deed,
land installment contract or option to buy; and
(ii) Any provisions for eviction or removal of the equity
seller in the case of late payment;
Enrolled House Bill 3630 (HB 3630-B) Page 13
(H) An explanation of how any repurchase price or fee
associated with any conveyance of title or deed back to the
equity seller will be calculated; and
(I) An explanation of the percentage of any equity recapture
payment the equity seller is to receive if the equity seller does
not exercise a right to receive back a conveyance of title or
deed; and
(f) Contain, in immediate proximity to the space reserved for
the equity seller's signature, a notice in substantially the
following form and printed in at least 14-point boldfaced
type: + }
________________________________________________________________
{ +
NOTICE REQUIRED BY OREGON LAW + }
{ +
THIS IS AN IMPORTANT LEGAL CONTRACT. + }
{ +
YOU ARE TRANSFERRING YOUR DEED OR TITLE + }
{ +
AND THIS COULD RESULT IN THE PERMANENT + }
{ +
LOSS OF YOUR HOME. CONTACT A LAWYER + }
{ +
OR OTHER PROFESSIONAL ADVISER BEFORE SIGNING. + }
{ + YOU MAY CANCEL THIS CONTRACT WITHIN THREE (3) BUSINESS
DAYS. + }
{ + If you cancel, you must pay for services that were provided
under this contract before cancellation and repay any money spent
on your behalf under this contract. You have 60 days after
cancellation to pay for the services and repay any money spent on
your behalf. You must also pay any interest allowed by this
contract, which may not exceed nine percent per year. + }
{ + The law requires that this contract contain the entire
agreement. You should not rely on any other written or oral
agreement or promise. + }
________________________________________________________________
{ + (2) An equity conveyance contract provision is void if
the provision provides for an equity seller to:
(a) Waive any rights of the equity seller under sections 9 to
14 of this 2008 Act;
(b) Consent to jurisdiction for litigation or dispute
resolution in a state other than Oregon;
(c) Consent to a choice of laws provision that applies the laws
of a state other than Oregon;
(d) Consent to venue in a county other than the county in which
the residential real property is located; or
(e) Pay any costs or fees that the equity purchaser or a person
acting in association with the equity purchaser incurred to
enforce the contract, other than court costs and filing fees
incurred in a successful circuit court action.
(3) An equity conveyance may not be carried out using a power
of attorney from the equity seller to the equity purchaser or a
person acting in association with the equity purchaser. + }
Enrolled House Bill 3630 (HB 3630-B) Page 14
SECTION 12. { + (1) In addition to any other cancellation or
rescission right, an equity seller may cancel an equity
conveyance contract as provided under this section before the
earlier of:
(a) Midnight of the third business day after the equity seller
signs a document purporting to transfer an interest in the
residence in foreclosure; or
(b) A foreclosure sale of the residence in foreclosure.
(2) If the equity seller gives a written notice of cancellation
under this section by mail, the notice is effective upon the
earlier of:
(a) Delivery to the physical address of the equity purchaser or
settlement agent; or
(b) Actual receipt by the equity purchaser or settlement agent.
(3) If the equity seller gives a written notice of cancellation
under this section by facsimile number or electronic mail, the
notice is effective upon the earlier of:
(a) Delivery to the facsimile or electronic mail address of the
equity purchaser or the settlement agent; or
(b) Actual receipt by the equity purchaser or settlement agent.
(4) Proof of a transmission by the equity seller to the
facsimile number or electronic mail address of the equity
purchaser or of the settlement agent creates a rebuttable
presumption that the notice of cancellation was delivered to the
facsimile number or electronic mail address of the equity
purchaser or settlement agent at the time of transmission.
(5) An equity seller who cancels or breaches an equity
conveyance contract under this section shall, no later than 60
days after the cancellation or breach, pay for any services
provided in good faith under the contact prior to the
cancellation or breach and repay any moneys paid or advanced
under the contract by or on behalf of the equity purchaser. The
equity seller shall also pay any interest stated in the equity
conveyance contract, not to exceed nine percent per year.
(6) Failure of the equity seller to repay moneys as provided in
subsection (5) of this section does not invalidate the
cancellation of the equity conveyance contract.
(7) When both parties have signed the equity conveyance
contract, the equity purchaser shall immediately provide the
equity seller with a signed and dated copy of the contract and a
cancellation form. The cancellation form must:
(a) Be in duplicate;
(b) Be on a separate sheet of paper attached to the contract;
(c) Be easily detachable; and
(d) Contain a statement in substantially the following form and
be printed in at least 14-point boldfaced type: + }
________________________________________________________________
{ +
HOW TO CANCEL + }
{ + IF YOU DECIDE NOT TO TRANSFER YOUR DEED OR TITLE, YOU MAY
CANCEL THIS CONTRACT. + }
{ + THE NOTICE OF CANCELLATION MUST BE RECEIVED WITHIN THREE
(3) BUSINESS DAYS AFTER YOU SIGNED THE CONTRACT. + }
{ + Date of Contract: _____ + }
Enrolled House Bill 3630 (HB 3630-B) Page 15
{ + Your notice of cancellation must be received before
midnight on: _____ (date). + }
{ + To cancel the contract, deliver a signed and dated copy of
this Notice of Cancellation, or write something saying you want
to cancel, and deliver it to __________ (name of settlement
agent) at __________ (address of settlement agent). You can
cancel by fax or e-mail. Deliver any cancellation by fax to
__________ or any cancellation by e-mail to __________. + }
{ + If you cancel, you must pay for any services that were
provided under the contract before you canceled and repay any
money spent on your behalf under the contract. You have 60 days
after cancellation to pay for the services and repay any money
spent on your behalf. You must also pay any interest allowed
under the contract, which may not exceed nine percent per
year. + }
{ +
NOTICE OF CANCELLATION + }
{ + TO: _____ (name of settlement agent) + }
{ + _____ (address, fax and e-mail of settlement agent) + }
{ + I cancel the contract. Please return all signed documents
to me. + }
{ + Date: _____ + }
{ + Your (homeowner's) printed name and address: __________ + }
{ + Your (homeowner's) signature: __________ + }
________________________________________________________________
{ + (8) Notwithstanding subsection (1)(a) of this section,
the period during which the equity seller may cancel the equity
conveyance contract does not commence until the equity purchaser
has complied with subsection (7) of this section.
(9) A notice of cancellation under this section is sufficient,
however expressed, if the notice indicates the intent of the
equity seller to cancel the equity conveyance contract. The
equity conveyance contract may not require the equity seller to
use the notice of cancellation form described in subsection (7)
of this section.
(10) No later than 10 days after receipt of a notice of
cancellation given in accordance with this section, the equity
purchaser shall return, without condition, any original deed,
title and contract, and any other document of transfer signed by
the equity seller. + }
SECTION 13. { + (1) An equity purchaser shall:
(a) Prior to an equity seller signing an equity conveyance
contract:
(A) Verify and be able to demonstrate that the equity seller
has or will have a reasonable ability to pay for the subsequent
reconveyance of the residential real property interest back to
the equity seller as provided under the equity conveyance
contract; or
(B) If the equity conveyance contract provides for a lease with
an option to repurchase the residential real property, verify and
Enrolled House Bill 3630 (HB 3630-B) Page 16
be able to demonstrate that the equity seller has or will have a
reasonable ability to make the lease payments and repurchase the
property within the term of the option to repurchase.
(b) Arrange for the equity seller and the settlement agent to
complete a settlement conference before the equity seller
transfers any interest under the equity conveyance contract.
(c) Comply with the requirements of the federal Home Ownership
and Equity Protection Act (15 U.S.C. 1639) and its implementing
regulations for any equity conveyance in which the equity seller
obtains a vendee interest in a contract for deed.
(d) Ensure that title to, or other interest in, the residential
real property is timely reconveyed to the equity seller as
provided under the terms of the equity conveyance contract.
(e) If a residential real property is resold within 24 months
after the equity seller enters into an equity conveyance
contract, pay the equity seller cash or consideration in an
amount equal to at least 82 percent of the equity recapture
payment from the resale no later than 15 days after the receipt
of cash or consideration from or on behalf of the purchasers of
the property.
(f) Timely record the memorandum of agreement required by
section 14 of this 2008 Act.
(2) An equity purchaser may not:
(a) As part of an equity conveyance contract, enter into
repurchase or lease terms that are commercially unreasonable or
unfair to an equity seller, or engage in any other unfair
conduct.
(b) Represent, directly or indirectly, that the equity
purchaser is acting as a financial adviser or foreclosure
consultant to the equity seller or otherwise is acting on behalf
of the equity seller.
(c) Make a false representation regarding the equity
purchaser's possession of professional credentials that indicate
knowledge or expertise regarding real property transactions.
(d) Represent, directly or indirectly, that the equity
purchaser is assisting the equity seller in preventing a
foreclosure, if the equity conveyance contract does not provide
for the equity seller to completely redeem the residential real
property and regain title.
(e) Directly or by implication make a statement or engage in
conduct that is false, deceptive, misleading or likely to cause
confusion or misunderstanding regarding an equity conveyance,
including but not limited to a statement or conduct with regard
to:
(A) The value of a residence in foreclosure;
(B) The amount of proceeds the equity seller would receive
after a foreclosure sale;
(C) An equity conveyance contract term; or
(D) The equity seller's rights or obligations incident to or
arising out of the equity conveyance.
(f) Before the equity seller's right to cancel an equity
conveyance contract has expired:
(A) Record or cause to be recorded an instrument of conveyance
or other document the equity seller signed;
(B) Transfer or purport to transfer any interest in the
residential real property to any third party; or
(C) Encumber or purport to encumber any interest in the
residential real property with any third party. + }
Enrolled House Bill 3630 (HB 3630-B) Page 17
SECTION 14. { + (1) For purposes of determining whether an
equity purchaser has violated section 13 (1)(a) of this 2008 Act,
there is a rebuttable presumption that:
(a) An equity seller has or will have a reasonable ability to
pay for a subsequent reconveyance of a residential real property
if, on the date the equity seller signs the equity conveyance
contract, the monthly payments projected for the equity seller's
primary housing expenses under the contract and monthly payments
for regular principal and interest payments on other personal
debt do not, in total, exceed 60 percent of the equity seller's
monthly gross income.
(b) The equity purchaser has failed to verify that the equity
seller has a reasonable ability to pay for a subsequent
reconveyance of a property if the equity purchaser has not
obtained supporting documents other than a statement by the
equity seller of assets, liabilities and income.
(2) If a property is resold within 24 months after an equity
seller enters into an equity conveyance contract, at the time of
making the equity recapture payment to the equity seller under
section 13 (1)(e) of this 2008 Act, the equity purchaser shall
provide the equity seller with a detailed accounting of the basis
for the payment amount. The accounting shall include detailed
documentation of the amounts subtracted by the equity purchaser
from the resale price to determine the amount of the equity
recapture payment.
(3) A bona fide purchaser that enters into a transaction with
an equity seller or equity purchaser receives good title to the
property, free and clear of:
(a) The rights of the parties to an equity conveyance contract
or a memorandum of agreement; or
(b) Any cancellation of the equity conveyance contract.
(4) Sections 9 to 14 of this 2008 Act do not impose a duty on a
property purchaser, settlement agent, title insurer or title
insurance producer regarding the application of the proceeds of a
resale of property by an equity purchaser.
(5) At the time of presenting an equity conveyance for
recording, the equity purchaser shall present a memorandum of
agreement for recording in the county where the residential real
property is located. The memorandum of agreement must be signed
by the equity purchaser and the equity seller, witnessed by a
notary public and in substantially the following form: + }
________________________________________________________________
{ +
MEMORANDUM OF AGREEMENT + }
{ + DATED: _____ + }
{ + SELLER NAME (print): __________ + }
{ + PURCHASER NAME (print): __________ + }
{ + EXPIRATION DATE: _____, unless otherwise extended by
written agreement between the parties. + }
{ + LEGAL DESCRIPTION AND PROPERTY ADDRESS: __________ + }
{ + TERMS OF AGREEMENT: __________ + }
{ + TRUE AND ACTUAL CONSIDERATION IS: _____ + }
Enrolled House Bill 3630 (HB 3630-B) Page 18
{ + SELLER SIGNATURE: __________ + }
{ + PURCHASER SIGNATURE: __________ + }
________________________________________________________________
SECTION 15. { + Sections 9 to 14 of this 2008 Act do not
preclude an equity seller from:
(1) Seeking to have a transfer of interest under an equity
conveyance declared to be an equitable mortgage; or
(2) Asserting any claim against an equity purchaser for an
equitable mortgage. + }
SECTION 16. ORS 646.607 is amended to read:
646.607. A person engages in an unlawful practice when in the
course of the person's business, vocation or occupation the
person:
(1) Employs any unconscionable tactic in connection with the
sale, rental or other disposition of real estate, goods or
services, or collection or enforcement of an obligation;
(2) Fails to deliver all or any portion of real estate, goods
or services as promised, and upon request of the customer, fails
to refund any money that has been received from the customer that
was for the purchase of the undelivered real estate, goods or
services and that is not retained by the seller pursuant to any
right, claim or defense asserted in good faith. This subsection
does not create a warranty obligation and does not apply to a
dispute over the quality of real estate, goods or services
delivered to a customer; { - or - }
(3) Violates ORS 401.107 (1) to (4) { + ; or
(4) Violates a provision of sections 9 to 14 of this 2008
Act + }.
SECTION 17. { + (1) As used in this section, 'equity seller '
has the meaning given that term in section 9 of this 2008 Act.
(2) In addition to any action by the Attorney General under ORS
646.607 or any other cause of action, an equity seller may bring
an action for damages incurred by the equity seller resulting
from a violation of sections 9 to 14 of this 2008 Act.
(3) If a court finds that a defendant in an action under this
section committed a violation of sections 9 to 14 of this 2008
Act knowingly, in addition to any award of damages for other
violations of sections 9 to 14 of this 2008 Act, the court shall
award the equity seller three times the amount of the actual
damages sustained by the equity seller as a result of the knowing
violation.
(4) The court may award an equity seller prevailing in an
action under this section reasonable attorney fees, costs and
expenses. If a court finds that an equity seller brought an
action under this section in bad faith or solely for purposes of
harassment, the court may award a prevailing defendant reasonable
attorney fees.
(5) An action under this section must be commenced within six
years. + }
SECTION 18. { + Violation of a provision of sections 2 to 6 or
9 to 14 of this 2008 Act is a misdemeanor punishable by not more
than one year's imprisonment, a fine of not more than $10,000, or
both. + }
SECTION 19. { + Sections 20 and 21 of this 2008 Act are added
to and made a part of ORS 86.705 to 86.795. + }
SECTION 20. { + (1) If a notice of default is recorded for
property that is subject to a residential trust deed, the sender
of a notice of sale under ORS 86.740 shall, on or before the date
Enrolled House Bill 3630 (HB 3630-B) Page 19
the notice of sale is served or mailed, give notice under this
section to the grantor by both first class and certified mail
with return receipt requested. Subject to any rules adopted under
subsection (2) of this section, the notice must be in
substantially the following form and printed in at least 14-point
type: + }
________________________________________________________________
{ +
NOTICE: + }
{ +
YOU ARE IN DANGER OF LOSING + }
{ +
YOUR PROPERTY IF YOU DO NOT + }
{ +
TAKE ACTION IMMEDIATELY + }
{ + This notice is about your mortgage loan on your property
at __________ (address). + }
{ + Your lender has decided to sell this property because the
money due on your mortgage loan has not been paid on time or
because you have failed to fulfill some other obligation to your
lender. This is sometimes called 'foreclosure.' + }
{ + The amount you would have had to pay as of _____ (date) to
bring your mortgage loan current was $_____. The amount you must
now pay to bring your loan current may have increased since that
date. + }
{ + By law, your lender has to provide you with details about
the amount you owe, if you ask. You may call _____ (telephone
number) to find out the exact amount you must pay to bring your
mortgage loan current and to get other details about the amount
you owe. You may also get these details by sending a request by
certified mail to: __________. + }
{ +
THIS IS WHEN AND WHERE + }
{ +
YOUR PROPERTY WILL BE SOLD + }
{ +
IF YOU DO NOT TAKE ACTION: + }
{ + Date and time: _____, 2___ at _____ + }
{ + Place: __________ + }
{ +
THIS IS WHAT YOU CAN DO + }
{ +
TO STOP THE SALE: + }
{ + 1. You can pay the amount past due or correct any other
default, up to five days before the sale. + }
{ + 2. You can refinance or otherwise pay off the loan in full
anytime before the sale. + }
{ + 3. You can call _____ (name) at _____ (telephone number) to
find out if your lender is willing to give you more time or
change the terms of your loan. + }
Enrolled House Bill 3630 (HB 3630-B) Page 20
{ + 4. You can sell your home, provided the sale price is
enough to pay what you owe. + }
{ + There are government agencies and nonprofit organizations
that can give you information about foreclosure and help you
decide what to do. For the name and telephone number of an
organization near you, please call the statewide telephone
contact number at _____. You may also wish to talk to a lawyer.
If you need help finding a lawyer, you may call the Oregon State
Bar's Lawyer Referral Service at _____ or toll-free in Oregon at
_____ or you may visit its website at: __________. Legal
assistance may be available if you have a low income and meet
federal poverty guidelines. For more information and a directory
of legal aid programs, go to __________. + }
{ + WARNING: You may get offers from people who tell you they
can help you keep your property. You should be careful about
those offers. Make sure you understand any papers you are asked
to sign. If you have any questions, talk to a lawyer or one of
the organizations mentioned above before signing. + }
{ + DATED: _____, 2___ + }
{ + Trustee name: __________ (print) + }
{ + Trustee signature: __________ + }
{ + Trustee telephone number: _____ + }
________________________________________________________________
{ + (2) The Department of Consumer and Business Services may
adopt rules prescribing the format, font size and other physical
characteristics of the notice form set forth in subsection (1) of
this section. The department shall adopt rules specifying the
statewide resource telephone contact numbers and website
addresses the sender is to insert in completing the notice.
(3) When filling blanks in the notice form set forth in
subsection (1) of this section, the sender of the notice shall
include, stated in plain language:
(a) The amount of payment that was needed to bring the mortgage
loan current as of the date stated in the notice; and
(b) One or more telephone numbers consisting of:
(A) A telephone number that will allow the grantor access
during regular business hours to details regarding the grantor's
loan delinquency and repayment information; and
(B) A telephone number that will allow the grantor access
during regular business hours to person-to-person consultation
with an individual authorized by the beneficiary to discuss the
grantor's payment and loan term negotiation and modification
options.
(4) Telephone numbers described in subsection (3) of this
section must be toll-free numbers unless the beneficiary:
(a) Made the loan with the beneficiary's own money;
(b) Made the loan for the beneficiary's own investment; and
(c) Is not in the business of making loans secured by an
interest in real estate.
(5) If the sender giving notice under subsection (1) of this
section has actual knowledge that the grantor is not the occupant
of the residential real property, the sender shall also give
Enrolled House Bill 3630 (HB 3630-B) Page 21
notice to the occupant of the property by both first class and
certified mail with return receipt requested. + }
SECTION 21. { + If a notice required by section 20 of this
2008 Act is not sent to a grantor, and the grantor does not
actually receive a copy of the notice at least 25 days prior to
the date the trustee conducts the sale, the grantor shall have
the same rights possessed by the holder of a junior lien or
interest who was omitted as a party defendant in a judicial
foreclosure proceeding. The purchaser at the trustee's sale, or
the purchaser's heirs, assigns or transferees, shall have the
same rights possessed by a purchaser at a sheriff's sale
following a judicial foreclosure. + }
SECTION 22. { + (1) Sections 2 to 6 of this 2008 Act apply to
agreements for services by a foreclosure consultant entered into
by homeowners beginning 90 or more days after the effective date
of this 2008 Act.
(2) Sections 9 to 14 of this 2008 Act apply to agreements for
equity conveyances entered into by equity sellers beginning seven
or more days after the effective date of this 2008 Act.
(3) Section 20 of this 2008 Act applies to residential trust
deed properties for which a notice of sale under ORS 86.740 is
sent beginning 90 or more days after the effective date of this
2008 Act. + }
SECTION 23. { + This 2008 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2008 Act takes effect on
its passage. + }
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Passed by House February 14, 2008
Repassed by House February 22, 2008
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate February 22, 2008
...........................................................
President of Senate
Enrolled House Bill 3630 (HB 3630-B) Page 22
Received by Governor:
......M.,............., 2008
Approved:
......M.,............., 2008
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2008
...........................................................
Secretary of State
Enrolled House Bill 3630 (HB 3630-B) Page 23