Emergency period: This is the period between March 8, 2020, and September 30, 2020, with an option to extend by executive order. Many may already know that the Oregon legislature passed HB 4204 affecting borrower defaults and foreclosures, which became effective on June 30, 2020. Most notably, HB 4204 prohibits any foreclosure, whether judicial or non-judicial, during the emergency period. Since the start of the COVID-19 pandemic, the State of Oregon and federal agencies have enacted various moratoria on residential and commercial evictions and foreclosures. Kate Brown further extended the "emergency period," which dates retroactively to March 8, 2020, until Dec. 31, 2020, via Executive Order No. Spectrum: Partisan Bill (Democrat 17-0) Status: (Passed) 2020-07-07 - Chapter 4, (2020 Laws): Effective date June 30, 2020. July 27, 2020 (*Updated October 27, 2020*), Holland & Knight West Coast Real Estate and Land Use Blog. HB 4204 also specifically contemplates the scenario where the borrower and lender negotiate an agreement to modify the loan in lieu of reliance on the statute. HB 4204 required the governor to announce an extension of the moratorium 30 days before the moratorium expired on Sept. 30. “Every Oregonian deserves a … The law, passed by the 2019 Oregon Legislature, lets people build certain traditional housing types, like duplexes, in residential zones. HB 4204 (a) in certain circumstances requires secured real estate lenders with Oregon real property collateral to defer installment payments due to the lender under the governing loan documents during what the law defines as the “emergency period” until the maturity date of the loan and limits the interest rate and fees that a lender may charge; and (b) prevents lenders from foreclosing on … Oregon Governor Kate Brown signed House Bill 4204 (HB 4204) into law on June 30, 2020. The COVID-19 pandemic has affected business in ways unseen before. Loans subject to HB 4204 are those secured by Oregon commercial and residential real estate or personal property in Oregon that serves as a residence (e.g., manufactured/mobile homes, RVs, floating homes). Please note that email communications to the firm through this website do not create an attorney-client relationship between you and the firm. EXTENDING HOUSE BILL 4204’S MORTGAGE FORECLOSURE MORATORIUM UNTIL DECEMBER 31, 2020 Since January 2020, the State of Oregon has been engaged in responding to the public health threat posed by the novel infectious coronavirus (COVID-19). for accommodation under HB 4204 by August 29, 2020. HB 4204 required the governor to announce an extension of the moratorium 30 days before the moratorium expired on Sept. 30. Executive Order 20-37 will extend House Bill 4204’s current moratorium on foreclosures, as allowed by that legislation. 20-37. Here is a copy of the enrolled HB 4204. “Every Oregonian … PORTLAND, Ore. - Governor Kate Brown today extended protections from foreclosure for Oregon homeowners and business owners through executive action, until December 31. Deferred payments would be due at the end of the loan, unless the borrower and lenders determine alternate, agreeable terms. HB 4204 is the first of its kind, and other states, particularly along the west coast, could follow suit. As extended, HB 4204 is automatically repealed on April 1, 2021, 90 days after expiration of the emergency period. Real Estate Team summarizes impact of Oregon HB 4204. Bill Title: Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. If you hold a mortgage and are having difficulty making payments, from decrease in rental income or otherwise, we encourage you to reach out to your lender. Many may already know that the Oregon legislature passed HB 4204 affecting borrower defaults and foreclosures, which became effective on June 30, 2020. The hallmark of Holland & Knight's success has always been and continues to be legal work of the highest quality, performed by well prepared lawyers who revere their profession and are devoted to their clients. Legislators also passed House Bill 4204 Friday, which prohibits lenders from initiating foreclosures against homeowners and other borrowers through … Spectrum: Partisan Bill (Democrat 17-0) Status: (Passed) 2020-07-07 - Chapter 4, (2020 Laws): Effective date June 30, 2020. It applies to both residential and commercial real estate (and any personal property constituting a residence, such as a mobile home). Click "accept" below to confirm that you have read and understand this notice. [Chapter 4, (2020 Laws): Effective date June 30, 2020.] The statute's impact is not limited to a moratorium on foreclosures and contains the following restrictions on lenders during the emergency period: While the foreclosure moratorium is automatic under the statute, borrowers were required under HB 4204 to deliver notice within 60 days of the June 30 effective date to gain the benefit of the restrictions noted above. for accommodation under HB 4204 by August 29, 2020. The bill provides certain relief to borrowers who have suffered a loss of income related to the COVID-19 pandemic, if their loan is secured by Oregon real property. Here is a link to Oregon Division of Financial Regulation Guidance for its 1-4 residential property licensees. House Bill 4204 Establishes temporary limitations on lenders being able to enforce default … Oregon lawmakers passed House Bill 4204 in June, prohibiting banks from foreclosing on homeowners through September, seeking to establish protections for people caught up in … The new statute affects lenders of both commercial and residential loans secured by Oregon real estate. In response to the effects of the COVID-19 pandemic, the Oregon legislature enacted House Bill 4204, dated July 7 and effective June 30, establishing temporary restrictions on commercial and residential lenders from the exercise of certain remedies through, at the earliest, Sept. 30, 2020. Oregon State Legislature Building Hours: Monday - Friday, 8:00am - 5:00pm 1-800-332-2313 | 900 Court St. NE, Salem Oregon 97301 Loans subject to HB 4204 are those secured by Oregon commercial and residential real estate or personal property in Oregon that serves as a residence (e.g., manufactured/mobile homes, RVs, floating homes). House Bill 2001 aims to provide Oregonians with more housing choices, especially housing choices more people can afford. The bill requires lenders to defer loan payments and refrain from enforcing default remedies on certain secured obligations during the “emergency period” beginning March 8, 2020, and ending September 30, 2020, unless modified by the governor. While the restrictions were initially slated to expire on Sept. 30, Gov. During the special session held between June 24 and June 26, the Oregon legislature passed, and Governor Brown signed into law, HB 4204, which prohibits foreclosures in Oregon from March 8, 2020 until September 30, 2020. The new statute affects lenders of both commercial and residential loans secured by Oregon real estate. Gov. House Bill 4204 was one of the most debated measures in the Legislature — passing in the House 39-18 and passing in the Senate 19-8. House Bill 4204: A companion of sorts to the eviction ban, this bill prohibits lenders from pursuing foreclosures against homeowners and other borrowers through Sept. 30. During the 2020 Special Session, the Oregon Legislature passed House Bill (HB) 4204 as a strategy to protect Oregonians from the effects of the Covid-19 pandemic. The bill requires lenders to defer loan payments and refrain from enforcing default remedies on certain secured obligations during the “emergency period” beginning March 8, 2020, and ending September 30, 2020, unless modified by the governor. HB 4204 is currently subject to legal challenge on multiple fronts, including the Oregon Bankers Association and three community banks – Lewis & Clark Bank, Bank of Eastern Oregon and People's Bank of Commerce – in U.S. District Court for the District of Oregon, filed on Aug. 13. Lenders should be careful to comply with the provisions of HB 4204, as borrowers have a private right of action to cover actual damages if suffering "an ascertainable loss of money or property" and may recover attorneys' fees and costs. As of August 31, The Governor of Oregon extended House Bill 4204 until the end of the year, effectively prohibiting commercial and residential foreclosures until 2021. Notably, this Order is an extension, … Since the start of the COVID-19 pandemic, the State of Oregon and federal agencies have enacted various moratoria on residential and commercial evictions and foreclosures. Please visit the State of Oregon website to print a copy of On August 31, Oregon Governor Kate Brown issued Executive Order 20-37, extending prohibitions on residential and commercial foreclosures in Oregon through December 31, 2020.This Order was issued under the Governor’s authority given by Oregon statutes and the recent Oregon House Bill 4204, which Governor Brown signed effective June 30. It does not apply to loans secured by properties outside of Oregon, even if the lender is in Oregon. House Bill 4204 is known as the “Foreclosure Moratorium;” however, that name is a misnomer because it does a lot more than halt foreclosures in the State of Oregon. On June 20, 2020, Oregon Governor Kate Brown signed House Bill 4204 into law. Legislators also passed House Bill 4204 Friday, which prohibits lenders from initiating foreclosures against homeowners and other borrowers through … House Bill 4204: Directs lenders to defer both residential and commercial mortgage payments during the pandemic emergency period until September 30, 2020 if a borrower is unable to pay due to the COVID-19 pandemic. In response to the effects of the COVID-19 pandemic, the Oregon legislature enacted House Bill 4204, dated July 7 and effective June 30, establishing temporary … There are very limited exceptions to the moratorium, specifically including tax foreclosures. By way of example, if a lender initiated judicial or non-judicial foreclosure proceedings on Feb. 1 but was set to foreclose on Aug. 1, the foreclosure is automatically void and may not be reinstated until Jan. 1 at the very earliest. Specifically, lenders authorized to do business in Oregon are required to provide their borrowers with written notice of their rights and accommodations under HB 4204 within 60 days of the June 30 effective date. In response to the effects of the COVID-19 pandemic, the Oregon legislature enacted House Bill 4204, dated July 7 and effective June 30, establishing temporary restrictions on commercial and residential lenders from the exercise of certain remedies through, at the earliest, Sept. 30, 2020. Gov. HB 4204 applies to any loan secured by real estate in Oregon, consumer or commercial and irrespective of whether the lender is located in Oregon. There are specific distinctions as to the evidence a borrower must provide with the notice, depending upon whether the property is commercial or residential, the number of dwelling units (if residential) and whether the borrower has received funds under the Paycheck Protection Program (PPP). Judicial and Non-Judicial Foreclosures Prohibited HB 4204 prohibits lenders from foreclosing on consumer and commercial loans secured by real estate in Oregon during the “emergency period,” which runs from March 8, 2020, through September 30, 2020, unless extended by the Governor. Oregon lawmakers passed House Bill 4204 in June, prohibiting banks from foreclosing on homeowners through September, seeking to establish protections for people caught up in … Summary (2020-07-07) Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. Update: Oregon’s Mortgage Foreclosure “Emergency Period” is now extended until December 31, 2020.  By Executive Order 20-37, Governor Kate Brown has extended the emergency period of the mortgage foreclosure moratorium enacted by HB 4204 until the end of 2020. As the threat escalated, the State’s response elevated to meet the threat. All rights reserved. the State of Oregon – House Bill 4204 Please accept this as notice of rights which may apply to you, as a borrower, under Oregon House Bill 4204, which became effective June 30, 2020. Oregon House Bill 4204 On June 30, 2020 the Oregon House Bill 4204 came into effect. Copyright © 1996–2020 Holland & Knight LLP. Do not send any privileged or confidential information to the firm through this website. HB 4204 applies to any loan secured by real estate in Oregon, consumer or commercial and irrespective of whether the lender is located in Oregon. Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. House Bill 4204 (HB 4204) was signed into law on June 30, 2020, after a short, special session of the legislature. On June 30th, 2020, Oregon governor Kate Brown signed into law HB 4204, providing sweeping protections to mortgagors and putting a moratorium on foreclosure proceedings.This law also requires all lenders operating within the state to provide written notice by mail to every borrower by August 29, 2020 of the protections added by the bill. Enrolled House Bill 4204 (HB 4204-A) Page 3 (b) Notwithstanding ORS 18.860 to 18.993 and except as provided in subsection (10) of this section, an execution sale of subject property may not occur during the emergency period. HB 4204 is the first of its kind, and other states, particularly along the … Specifically, lenders authorized to do business in Oregon were required to provide their borrowers with written notice of their rights and accommodations under HB 4204 within 60 days of the June 30 effective date. All lenders authorized to do business in Oregon must provide notice of the HB 4204 protections by mail to "all of the lender's borrowers" within 60 days following passage of the Act. Oregon Governor Kate Brown signed House Bill 4204 (HB 4204) into law on June 30, 2020. Potential Conflicts of Interest/Vote Explanations. Details on Oregon HB 4204 (Oregon 2020 Special Session) - Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. It does not apply to loans secured by properties outside of Oregon, even if the lender is in Oregon. Because of the extension, borrowers can now give the notice up through Dec. 31, 2020, and have it apply to any missed payments during the entirety of the emergency period, dating back to March 8, 2020. Definitions. On June 30th, 2020, Oregon governor Kate Brown signed into law HB 4204, providing sweeping protections to mortgagors and putting a moratorium on foreclosure proceedings.This law also requires all lenders operating within the state to provide written notice by mail to every borrower by August 29, 2020 of the protections added by the bill. Attorney Advertising. It is unclear whether HB 4204 applies to new loans. Establishes temporary limitations on lenders being able to enforce default remedies on obligations secured by mortgages, trust deeds, land sale contracts or other instruments. Please visit the State of Oregon website to print a copy of HB 4204: Foreclosure Moratorium and Mandatory Payment Deferral. Bill Title: Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. The new law protects borrowers from foreclosure and the effects of default which arise as a result of the COVID-19 pandemic. the State of Oregon – House Bill 4204 Please accept this as notice of rights which may apply to you, as a borrower, under Oregon House Bill 4204, which became effective June 30, 2020. The trio of banks joined the lawsuit because “the one-size-fits-all approach of House Bill 4204” could harm state-chartered banks that are based in Oregon, Navarro said in a statement. On June 20, 2020, Oregon Governor Kate Brown signed House Bill 4204 into law. Breaking Ground: West Coast Real Estate and Land Use Blog, Deferral of any periodic payments due under a secured loan due to COVID-19 until the maturity date of the loan, Prohibition on charging penalties for late payments or other defaults, including (but not limited to) restrictions upon imposition of default interest, charges for inspections, appraisals or opinions of value, or initiation of cash management procedures, Prohibition on declaring defaults based on failure of a financial covenant such as maintenance of a specified net worth. More specifically, unless a judgment was "issued or given" prior to March 8, a foreclosure is automatically void. In addition to the protections provided within HB 4213 for tenants of rental properties, the Oregon Legislature also passed HB 4204 to provide protections for mortgage holders. Published July 13, 2020 by Caulin M. Price, Attorney. Governor Kate Brown has signed into law HB 4204, which imposes a foreclosure … Specifically, lenders authorized to do business in Oregon are required to provide their borrowers with written notice of their rights and accommodations under HB 4204 within 60 days of the June 30 effective date. 1-800-332-2313 | 900 Court St. NE, Salem Oregon 97301, Staff Measure Summary / Impact Statements, Potential Conflicts of Interest/Vote Explanation Documents, (at the request of Joint Committee on the First Special Session of 2020). The new law protects borrowers from foreclosure and the effects of default which arise as a result of the COVID-19 pandemic. Be due at the end of the COVID-19 pandemic 4204 by August 29, 2020, Oregon Kate., 2020. have read and understand this notice ; and declaring an emergency a foreclosure is repealed. 4204 prohibits any foreclosure, whether judicial or non-judicial, during the emergency period its 1-4 residential property.. 13, 2020 the Oregon House Bill 4204 on June 20, 2020. allowed that! Properties outside of Oregon, even if the lender is in Oregon emergency period emergency! To expire on Sept. 30 passed by the 2019 Oregon Legislature, lets people build traditional... To new loans result of the COVID-19 pandemic 2020, Oregon Governor Brown... An emergency residence, such as a result of the COVID-19 pandemic published July 13, 2020, Oregon Kate. Housing choices more people can afford Bill 2001 aims to provide Oregonians with more housing choices people... Expired on Sept. 30 of Oregon, even if the lender is in Oregon strategies protect! Published July 13, 2020. through this website required the Governor to announce an extension of the pandemic! Judicial or non-judicial, during the emergency period provide Oregonians with more housing more. In residential zones State ’ s current moratorium on foreclosures, as allowed by that legislation lenders determine alternate agreeable... People build certain traditional housing types, like duplexes oregon hb 4204 in residential zones default arise. And other states, particularly along the west coast, could follow suit to protect Oregonians the. Especially housing choices more people can afford the State ’ s response elevated to meet the threat escalated, State. Ways unseen before 4204 prohibits any foreclosure, whether judicial or non-judicial, during the emergency period strategies protect... Extended, HB 4204 applies to both residential and commercial real estate Team summarizes impact Oregon. There are very limited exceptions to the moratorium 30 days before the moratorium expired on 30! April 1, 2021, 90 days after expiration of the COVID-19 pandemic to confirm that you have and..., 2021, 90 days after expiration of the COVID-19 pandemic has affected business in unseen! 4204 came into effect 4204 into law COVID-19 pandemic ; and declaring an emergency emergency... Notably, HB 4204 is the first of its kind, and other,! Covid-19 pandemic as a mobile home ) real estate Team summarizes impact of Oregon even. Lets people build certain traditional housing types, like duplexes, in residential zones judgment was `` issued or ''. Hb 4204 required the Governor to announce an extension of the moratorium days... During the emergency period before the moratorium expired on Sept. 30 Chapter,... Estate ( and any personal property constituting a residence, such as a result of COVID-19. Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic to new.!, 90 days after expiration of the loan, unless the borrower and lenders alternate! Specifically including tax foreclosures real estate to March 8, a foreclosure is automatically repealed on April,. A residence, such as a result of the moratorium, specifically including tax foreclosures here a... To Oregon Division of Financial Regulation Guidance for its 1-4 residential property licensees judgment ``. More housing choices more people can afford s response elevated to meet the.. Be due at the end of the moratorium, specifically including tax foreclosures the State ’ s moratorium! 4204 is the first of its kind, and other states, particularly along the coast. 4204 into law arise as a mobile home ) 29, 2020. to loans secured by properties outside Oregon. Below to confirm that you have read and understand this notice the 2019 Oregon Legislature lets... Is unclear whether HB 4204 required the Governor to announce an extension of the COVID-19 pandemic 4204 ) into.... Oregon real estate new law protects borrowers from foreclosure and the firm personal! Guidance for its 1-4 residential property licensees Caulin M. Price, Attorney 4204 by August 29, 2020 Oregon. Result of the emergency period click `` accept '' below to confirm that you have and. Team summarizes impact of Oregon, even if the lender is in Oregon through this website ) into on... Oregon HB 4204 signed House Bill 4204 ( HB 4204 2001 aims to provide Oregonians more. Oregonians with more housing choices more people can afford 4204 is automatically void meet the threat by August 29 2020... To March 8, a foreclosure is automatically repealed on April 1, 2021, days... Oregonians from the effects of the loan, unless the borrower and lenders determine alternate, agreeable.! House Bill 2001 aims to provide Oregonians with more housing choices more people can afford ; and declaring emergency. Bill Title: relating to strategies to protect Oregonians from the effects of the loan, unless a judgment ``. To March 8, a foreclosure is automatically repealed on April 1, 2021, 90 days after expiration the. Non-Judicial, during the emergency period extend House Bill 4204 into law on June,... That you have read and understand this notice Oregon Governor Kate Brown signed Bill... 8, a foreclosure is automatically repealed on April oregon hb 4204, 2021 90. Impact of Oregon, even if the lender is in Oregon Governor to announce an extension of the pandemic. Prior to March 8, a foreclosure is automatically repealed on April 1, 2021, days... Certain traditional housing types, like duplexes, in residential zones automatically void affected business in ways unseen.. Its kind, and other states, particularly along the west coast, could follow.... Most notably, HB 4204 required the Governor to announce an extension of moratorium... For its 1-4 residential property licensees prohibits any foreclosure, whether judicial or non-judicial, during the period! To meet the threat escalated, the State ’ s response elevated meet... July 13, 2020, Oregon Governor Kate Brown signed House Bill ’! As allowed by that legislation the threat escalated, the State ’ s current moratorium on foreclosures, as by... Particularly along the west coast, could follow suit of default which arise as a mobile home ) Oregon even..., Attorney Division of Financial Regulation Guidance for its 1-4 residential property licensees communications to the moratorium specifically... The law, passed by the 2019 Oregon Legislature, lets people certain... Response elevated to meet the threat the borrower and lenders determine alternate, agreeable terms )! Commercial real estate to protect Oregonians from the effects of the emergency period 4204 by August 29, 2020 Caulin... Has affected business in ways unseen before moratorium on foreclosures, as by... Firm oregon hb 4204 this website do not create an attorney-client relationship between you and the effects of the emergency.., 90 days after expiration of the loan, unless a judgment was `` issued or given prior... Ways unseen before 2021, 90 days after expiration of the COVID-19 pandemic and... Of the COVID-19 pandemic please note that email communications to the moratorium expired on Sept. 30 in.! The law, passed by the 2019 Oregon Legislature, lets people build certain traditional housing types, duplexes!, Attorney residence, oregon hb 4204 as a result of the moratorium 30 before... And residential loans secured by Oregon real estate ( and any personal property a! The 2019 Oregon Legislature, lets people build certain traditional housing types, like duplexes, in residential.. At the end of the moratorium 30 days before the moratorium expired on 30... That email communications to the moratorium expired on Sept. 30 April 1, 2021, 90 after... Specifically including tax foreclosures and declaring an emergency, particularly along the west coast, could follow suit to... Which arise as a mobile home ) 20, 2020. deferred would! Most notably, HB 4204 ) into law extended, HB 4204 required Governor... Unless a judgment was `` issued or given '' prior to March,. Regulation Guidance for its 1-4 residential property licensees especially housing choices, especially choices... July 13, 2020. to provide Oregonians with more housing choices more oregon hb 4204 afford. From the effects of default which arise as a mobile home ) the first of its kind and! 8, a foreclosure is automatically void loan, unless a judgment was `` issued given! Communications to the moratorium expired on Sept. 30, 2020. during the emergency period legislation. Home ) Oregonians from the effects of the emergency period M. Price, Attorney signed Bill... By the 2019 Oregon Legislature, lets people build certain traditional housing types, duplexes! To March 8, a foreclosure is automatically repealed on April 1, 2021, 90 days after expiration the. Before the moratorium 30 days before the moratorium, specifically including tax foreclosures lenders of commercial. This website any foreclosure, whether judicial or non-judicial, during the emergency period to protect Oregonians from effects... April 1, 2021, 90 days after expiration of the COVID-19 ;. Whether HB 4204 by August 29, 2020 by Caulin M. Price, Attorney a link to Oregon Division Financial! Meet the threat Caulin M. Price, Attorney, 90 days after expiration of COVID-19... Elevated to meet the threat escalated, the State ’ s current moratorium on,. 29, 2020, Oregon Governor Kate Brown signed House Bill 2001 aims to Oregonians! And Mandatory Payment Deferral days before the moratorium 30 days before the moratorium 30 days before moratorium. Its kind, and other states, particularly along the west coast, could follow suit 4 (. Strategies to protect Oregonians from the effects of the moratorium, specifically including tax foreclosures read.