75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
HA to HB 3004
 
LC 1939/HB 3004-6
 
                       HOUSE AMENDMENTS TO
                         HOUSE BILL 3004
 
               By COMMITTEE ON CONSUMER PROTECTION
 
                            April 30
 
  On page 1 of the printed bill, delete lines 5 through 30 and
insert:
  '  { +  SECTION 1. + } ORS 86.770 is amended to read:
  ' 86.770.   { - (1) A sale made by a trustee under ORS 86.705
to 86.795 shall foreclose and terminate all interest in the
property covered by the trust deed of all persons to whom notice
is given under ORS 86.740 and 86.750 and of any other person
claiming by, through or under such persons, and such persons
shall have no right to redeem the property from the purchaser at
the trustee's sale. The failure to give notice to any of these
persons shall not affect the validity of the sale as to persons
so notified. - }
  '  { - (2) Except as provided in subsection (4) of this
section, no other or further action shall be brought, nor
judgment entered for any deficiency, against the grantor, or the
grantor's successor in interest, if any, on the note, bond, or
other obligation secured by the trust deed or against any other
person obligated on such note, bond or other obligation after a
sale is made: - }
  '  { - (a) By a trustee under ORS 86.705 to 86.795; or - }
  '  { - (b) Under a judicial foreclosure of a residential trust
deed. - }
  '  { - (3) Notwithstanding ORS 88.070, when there is a judicial
foreclosure of a trust deed that is not a residential trust deed,
the judgment shall provide that if the sale proceeds are
insufficient to satisfy the judgment, execution may issue for any
amount by which the unpaid balance of the obligation secured by
the trust deed exceeds the net sale proceeds payable to the
beneficiary. - }
  '  { - (4) Nothing in this section shall preclude an action
judicially or nonjudicially foreclosing the same trust deed as to
any other property covered thereby, or any other trust deeds,
mortgages, security agreements, or other consensual or
nonconsensual security interest or liens covering any other real
or personal property security for the note, bond or other
obligation secured by the trust deed under which a sale has been
made or an action against a guarantor to the extent of any
remaining deficiency following judicial foreclosure. A guarantor
of an obligation secured by a residential trust deed shall not
have the right to recover any deficiency from the grantor or any
successor in interest of the grantor. - }
  '  { +  (1) If, under ORS 86.705 to 86.795, a trustee sells
property covered by a trust deed, the trustee's sale forecloses
and terminates the interest in the property that belongs to a
person entitled to notice of the sale under ORS 86.740 and 86.750
or to a person that claims an interest by, through or under the
person entitled to notice. A person whose interest the trustee's
sale foreclosed and terminated may not redeem the property from
the purchaser at the trustee's sale. A failure to give notice to
 
a person entitled to notice does not affect the validity of the
sale as to persons that were notified.
  ' (2) Except as provided in subsection (4) of this section,
after a trustee's sale under ORS 86.705 to 86.795 or after a
judicial foreclosure of a residential trust deed, an action may
not be brought or a judgment entered for a deficiency against the
grantor, the grantor's successor in interest or another person
obligated on the note, bond or other obligation secured by the
residential trust deed.
  ' (3) Notwithstanding ORS 88.070, in a judicial foreclosure of
a trust deed that is not a residential trust deed the judgment
must provide that if the sale proceeds are insufficient to
satisfy the judgment, execution may issue for the amount by which
the unpaid balance of the obligation secured by the trust deed
exceeds the net sale proceeds payable to the beneficiary.
  ' (4) This section does not preclude:
  ' (a) An action that forecloses, judicially or nonjudicially:
  ' (A) Other property covered by the trust deed that is the
subject of the foreclosure; or
  ' (B) Another trust deed, mortgage, security agreement,
consensual or nonconsensual security interest or lien that covers
other real or personal property that is also used as security for
the note, bond or other obligation that is secured by the trust
deed for the property that was sold.
  ' (b) An action against a guarantor for a deficiency that
remains after a judicial foreclosure.
  ' (c) An action for a deficiency that remains after a trustee's
sale or a judicial foreclosure of a residential trust deed, if
the person that brings the action or an affiliate of the person
that brings the action:
  ' (A) Does not foreclose on the residential trust deed,
judicially or nonjudicially;
  ' (B) Does not receive proceeds from the trustee's sale; and
  ' (C) Is not the trustee or beneficiary in the residential
trust deed that is the subject of the foreclosure.
  ' (5) A guarantor of an obligation secured by a residential
trust deed may not recover a deficiency from the grantor or a
successor in interest of the grantor.
  ' (6) As used in subsection (4) of this section, 'affiliate '
means a person that controls, is controlled by or is under common
control with the person that brings an action under subsection
(4)(c) of this section. + } ' .
  On page 2, delete lines 1 through 8.
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