76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 2916
Sponsored by Representative WINGARD (at the request of John
Bacon) (Presession filed.)
CHAPTER ................
AN ACT
Relating to residual debts following short sales of residential
property; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) As used in this section:
(a) 'Borrower' means an individual who, directly or indirectly
and individually or together with another person, is obligated on
a real estate loan agreement, including but not limited to a
mortgagor or a grantor, as defined in ORS 86.705.
(b) 'Lender' means a person that makes, extends or holds a real
estate loan agreement, including but not limited to a mortgagee
or a beneficiary, as defined in ORS 86.705.
(c) 'Real estate loan agreement' means an arrangement between a
lender and a borrower, including but not limited to a mortgage or
a trust deed, by means of which the lender agrees to extend a
loan and the borrower agrees to secure the loan in whole or in
part with residential property, or an interest in residential
property, that is located in this state.
(d) 'Residential property' means real property upon which is
situated four or fewer improvements designed for residential use,
one of which a borrower occupies as the borrower's residence.
(e) 'Residual debt' means an amount due on a loan, evidence of
which exists in a real estate loan agreement, note, bond,
contract or similar written agreement, that a borrower is unable
to pay out of the proceeds from a sale of the residential
property that secures the loan.
(f) 'Short sale' means a sale of residential property that is
subject to foreclosure under ORS 86.705 to 86.795 or ORS chapter
88 for an amount that is less than the remaining amount due on
the loan that the residential property secures.
(2) If a lender reports to the Internal Revenue Service that as
a consequence of or in conjunction with a short sale of
residential property the lender has canceled all or a portion of
a borrower's debt under a real estate loan agreement and the
lender provides to the borrower written evidence of the lender's
report to the Internal Revenue Service, the lender or an assignee
of the lender may not bring an action or otherwise seek payment
for the residual debt following the short sale. + }
SECTION 2. { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
Enrolled House Bill 2916 (HB 2916-A) Page 1
----------
Passed by House April 26, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate June 10, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2916 (HB 2916-A) Page 2
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2916 (HB 2916-A) Page 3