Chapter 86 · Chapter 86 2013 EDITION Mortgages; Trust Deeds ... 86.050 Payment of taxes and other charges by mortgagee. Whenever a mortgagor fails to pay when due any taxes,

TITLE 9

MORTGAGES AND LIENS

Chapter 86. Mortgages; Trust Deeds86A. Mortgage Lending

87. Statutory Liens88. Foreclosure of Mortgages and Other Liens

Chapter 86

2013 EDITION

Mortgages; Trust Deeds

REAL PROPERTY MORTGAGES86.010 Nature of mortgagee’s interest86.020 Covenant to pay money not implied86.030 Absolute deed as a mortgage86.040 Improvements on mortgaged lands86.050 Payment of taxes and other charges by

mortgagee86.060 Assignment of mortgage86.080 Record of assignment not notice to

mortgagor86.095 Acts not affecting priority of lien of credit

instrument86.100 Discharge of mortgage86.110 Discharge of record by owner and holder

of mortgage note who is not themortgagee of record

86.120 Discharge of mortgage on real property;effect of discharge

86.130 Discharge by foreign executors, adminis-trators, conservators and guardians

86.140 Liability of mortgagee for failure to dis-charge mortgage

86.150 Loan agreements and promissory notes tostate maximum prepayment privilegepenalty

86.155 Priority of line of credit instrument as tocertain advances; procedure to limit in-debtedness in residential line of credit in-strument

86.157 Action for residual debt after short saleof residential property

LATE CHARGES86.160 Definitions for ORS 86.160 to 86.18586.165 Late charge86.170 Prohibited mortgage provisions86.175 Scope86.180 ORS 86.160 to 86.185 not applicable to cer-

tain mortgagees; notice to borrowers

86.185 ORS 86.160 to 86.185 not applicable to cer-tain loans

REAL ESTATE LOANS; SECURITY PROTECTION

86.205 Definitions for ORS 86.205 to 86.27586.210 Types of lender security protection pro-

visions allowed86.214 Application of ORS 86.210 and 86.245 to

real estate loan agreements86.240 Limit on amount required in security

protection escrow account; compliancewith federal laws for certain loans ascompliance with state laws

86.245 Interest on security protection deposits;exception

86.250 Service charge prohibited where interestrequired

86.255 Arrangements where security protectionprovisions not required; information toborrower

86.260 Payment of taxes where security pro-tection provision required; credit of dis-count where taxes not paid; cause ofaction by borrower

86.265 Effect of lender violation of ORS 86.205 to86.275

86.270 ORS 86.205 to 86.275 inapplicable to certainloan agreements; notice to borrower

86.275 Severability

CHATTEL MORTGAGES86.405 Secretary of State to furnish statement

of mortgages filed before September 1,1963; fee

86.440 Discharge of mortgage recorded withcounty recording officer

86.460 Discharge of mortgage filed with Secre-tary of State; fee

86.470 Discharge, assignment and foreclosure ofmortgages on chattels registered and li-censed by Department of Transportation

Title 9 Page 1 (2013 Edition)

MORTGAGES AND LIENS

INVESTMENTS; FEDERAL HOUSING ADMINISTRATOR

86.610 Power of financial institutions, fiduciariesand others to make loans secured byproperty insured by Federal Housing Ad-ministrator

86.620 Investment of funds of financial insti-tutions, fiduciaries and others in bondsand mortgages accepted by Federal Hous-ing Administrator, debentures issuedthereby, and obligations of nationalmortgage associations

86.630 Eligibility of securities described in ORS86.620 as security for deposits, investmentor reserve of securities

86.640 Applicability of other laws requiring se-curity or regulating loans and invest-ments

TRUST DEEDS

(General Provisions)86.705 Definitions for ORS 86.705 to 86.81586.707 Additional definitions for ORS 86.726,

86.729, 86.732, 86.736, 86.741, 86.744 and 86.74886.710 Trust deeds authorized to secure per-

formance of obligation; methods of fore-closure after breach

86.713 Qualifications of trustee; certificate ofauthority to transact business; law prac-tice serving as trustee; appointment ofsuccessor trustee; trustee’s duties

86.715 Trust deed deemed to be mortgage on realproperty; applicability of mortgage laws

86.720 Reconveyance upon performance; liabilityfor failure to reconvey; release of trustdeed

86.722 Correction of error concerning status oreffect of trust deed; rights of bona fidepurchaser

(Foreclosures)86.726 Resolution conference for foreclosure; ex-

emptions; procedure to request confer-ence; fee

86.729 Scheduling and notice for resolution con-ference; information required; fees; post-ponement, rescheduling and cancellation;liability of facilitator

86.732 Attendance at resolution conference; au-thority of beneficiary’s agent; represen-tation of grantor; terms of foreclosureavoidance measure; report

86.736 Certificate of compliance; expiration86.741 Attorney General duties and powers; pay-

ments; rules86.744 Foreclosure Avoidance Fund86.748 Determination of ineligibility for foreclo-

sure avoidance measure; notice; record-ing; penalty

86.752 Foreclosure by advertisement and sale86.756 Notice to grantor; requirements; addi-

tional forms; rules86.761 Failure to give notice to grantor; remedy86.764 Notice of sale for certain persons86.767 Failure to give notice of sale; action by

omitted person; defense; pleading andproving knowledge of sale; attorney fees;exclusive remedy

86.771 Contents of notice of sale; additional no-tices; contents and requirements

86.774 Service and publication of notice; record-ing proof of compliance

86.778 Discontinuance of foreclosure proceedingsafter cure of default

86.782 Sale of property; obtaining possession af-ter sale; procedures; notices; require-ments for postponing or rescinding sale

86.786 Request for information from trustee86.789 Information provided by trustee86.794 Disposition of proceeds of sale86.797 Effect of sale; actions for deficiency; re-

strictions86.800 Contents of trustee’s deed to purchaser86.803 Recitals in trustee’s deed and certain af-

fidavits as prima facie or conclusive evi-dence

86.806 Requests for copies of notice of default ornotice of sale

86.809 Compensation of trustee86.812 Impermissible conditions for approving

short sale or sale of note; exceptions86.815 Time within which foreclosure must be

commenced

PENALTIES86.990 Penalties


MORTGAGES; TRUST DEEDS 86.095

REAL PROPERTY MORTGAGES86.010 Nature of mortgagee’s interest.

A mortgage of real property is not a convey-ance so as to enable the owner of the mort-gage to recover possession of the propertywithout a foreclosure and sale. This sectionis not intended as a limitation upon the rightof the owner of real property to mortgage orpledge the rents and profits thereof, nor asprohibiting the mortgagee or pledgee of suchrents and profits, or any trustee under amortgage or trust deed from entering intopossession of any real property, other thanfarmlands or the homestead of the mortgagoror successor in interest, for the purpose ofoperating the same and collecting the rentsand profits thereof for application in accor-dance with the provisions of the mortgage ortrust deed or other instrument creating thelien, nor as any limitation upon the powerof a court of equity to appoint a receiver totake charge of the property and collect therents and profits thereof.

86.020 Covenant to pay money notimplied. No mortgage shall be construed asimplying a covenant for the payment of thesum thereby secured. When there is no ex-press covenant for such payment containedin the mortgage, and no bond or other sepa-rate instrument to secure such payment shallhave been given, the remedies of themortgagee shall be confined to the landsmentioned in the mortgage.

86.030 Absolute deed as a mortgage.When a deed purports to be an absolute con-veyance in terms, but is made or intended tobe made defeasible by a deed of defeasanceor other instrument, the original conveyanceshall not be thereby defeated or affected asagainst any person other than the maker ofthe defeasance, or the heirs or devisees ofthe maker, or persons having actual noticethereof, unless the instrument of defeasanceis recorded with the recording officer of thecounty where the lands lie.

86.040 Improvements on mortgagedlands. No person shall sell, dispose of, re-move or damage any building or other im-provements upon mortgaged lands. All suchimprovements are deemed a part of themortgaged property and are subject to themortgage lien. When any improvements areremoved from the mortgaged premises in vi-olation of this section, the mortgagee mayfollow and regain possession of such im-provements wherever found or may recoverthe reasonable value thereof from the personremoving them.

86.050 Payment of taxes and othercharges by mortgagee. Whenever amortgagor fails to pay when due any taxes,assessments, interest on prior mortgages, in-

surance premiums or other charges neces-sary to be paid for the protection of the lienof a mortgagee, the mortgagee may pay thesame, and such payments shall be added tothe mortgage debt and secured by the mort-gage held by the mortgagee, and shall bearinterest at the same rate as specified in themortgage. This section applies only to mort-gages executed after June 3, 1929, and doesnot affect the right of parties to specificallycontract otherwise than as provided in thissection.

86.060 Assignment of mortgage. Mort-gages may be assigned by an instrument inwriting, executed and acknowledged with thesame formality as required in deeds andmortgages of real property, and recorded inthe records of mortgages of the county wherethe land is situated.

86.070 [Repealed by 1965 c.252 §1]

86.080 Record of assignment not no-tice to mortgagor. The recording of the as-signment of a mortgage is not of itself noticeof such assignment to the mortgagor, or theheirs or personal representatives of themortgagor, so as to invalidate a paymentmade by any of them to the mortgagee.

86.090 [Repealed by 1965 c.252 §1]

86.095 Acts not affecting priority oflien of credit instrument. (1) Actions thatdo not affect the priority granted to the lienof a credit instrument at the time it is firstreceived for recordation shall include butshall not be limited to:

(a) Renegotiation or adjustment of theinitial interest rate provided in the note orthe credit instrument, upward or downward,which may increase or decrease the amountof periodic payments or may extend orshorten the term of the credit instrument, orboth;

(b) An increase in the underlying obli-gation secured by the credit instrument dur-ing any part of the term of the creditinstrument as a result of deferment of all ora portion of the interest payments and theaddition of such payments to the outstandingbalance of the obligation;

(c) Execution of new notes at designatedintervals during the term of the credit in-strument that reflect changes made pursuantto paragraph (a) or (b) of this subsection;

(d) Extension of the term of the creditinstrument;

(e) Substitution of a note if there is noincrease in the principal amount to be paidunder the note;

(f) Modification of periodic payments re-quired under the note if there is no increasein the principal amount due under the note;or


86.100 MORTGAGES AND LIENS

(g) Advances made under ORS 86.155.(2) As used in this section, the addition

of accrued interest to the principal amountof the underlying obligation is not an in-crease in the principal amount.

(3) As used in this section, “credit in-strument” includes a mortgage, a line ofcredit instrument, a deed of trust and a con-tract for sale of real property. [1981 c.304 §2;1987 c.716 §2; 1991 c.246 §1; 2001 c.20 §1]

86.100 Discharge of mortgage. Anymortgage shall be discharged of recordwhenever there is presented to the recordingofficer a certificate executed by themortgagee, or the personal representativesor assigns of the mortgagee, acknowledgedor proved and certified as prescribed by lawto entitle conveyances to be recorded, speci-fying that such mortgage has been paid orotherwise discharged. Every such certificate,and the proof or acknowledgment thereof,shall be recorded at full length. [Amended by1965 c.252 §2]

86.110 Discharge of record by ownerand holder of mortgage note who is notthe mortgagee of record. (1) Whenever apromissory note secured by mortgage on realproperty is transferred by indorsement with-out a formal assignment of the mortgage, andthe mortgage is recorded, the mortgage, uponpayment of the promissory note, may be dis-charged of record by the owner and holderof the promissory note making and filingwith the appropriate recording officer a cer-tificate, verified by oath, proving the satis-faction of mortgage and declaring, insubstance, that the owner and holder is theowner and holder of the note secured by themortgage by indorsement of the mortgageeand that the note has been fully paid andproving that fact to the satisfaction of therecording officer.

(2) Upon receiving the certificate, therecording officer shall record the documentand index the document as a satisfaction ofmortgage. The record shall have the sameeffect as a deed of release of the mortgageeduly acknowledged and recorded. [Amended by1965 c.252 §3; 2001 c.577 §1]

86.120 Discharge of mortgage on realproperty; effect of discharge. No mortgageupon real property shall be discharged exceptas provided in ORS 86.110 or by the personappearing upon the records of the countywhere the mortgage is recorded to be theowner thereof. A discharge of the mortgageby such person shall operate to free the landdescribed in the mortgage from the lien ofthe mortgage as against all subsequent pur-chasers and incumbrances for value andwithout notice.

86.130 Discharge by foreign executors,administrators, conservators and guardi-ans. Foreign executors, administrators, con-servators and guardians may dischargemortgages upon the records of any countyupon recording with the recording officer ofthe county in which the mortgage is re-corded a certified copy of their letters testa-mentary, or of administration, or ofguardianship or of conservatorship. The cer-tificate shall include a statement that theletters are in effect, and the certificate shallbe recorded in the mortgage records.[Amended by 1973 c.506 §§2,44]

86.140 Liability of mortgagee for fail-ure to discharge mortgage. If anymortgagee or the personal representative orassignee of the mortgagee, after full per-formance of the condition of the mortgagebefore or after a breach thereof, shall, within30 days after being thereto requested, andafter tender of reasonable charges, fail todischarge the same, or to execute and ac-knowledge a certificate of discharge or re-lease thereof, that person shall be liable tothe mortgagor, or the heirs or assigns of themortgagor, in the sum of $500 damages andalso for all actual damages occasioned bysuch failure, to be recovered in an action atlaw. The owner and holder of the promissorynote referred to in ORS 86.110 is deemed thepersonal representative of the mortgagee forthe purposes of this section. [Amended by 1955c.29 §1; 1955 c.512 §1; 1993 c.648 §1]

86.150 Loan agreements and promis-sory notes to state maximum prepay-ment privilege penalty. (1) Any personmaking a loan having a loan period of morethan three years secured by a mortgage orby a trust deed on real property located inthis state shall, with respect to such loan,expressly and clearly state on the loanagreement and promissory note any maxi-mum prepayment privilege penalty. Thestatement shall include the maximum pre-payment penalty applicable for prepaymentduring the first year of the loan period andfor each year thereafter.

(2) Violation of subsection (1) of thissection with respect to a loan agreement orpromissory note shall render any prepaymentprivilege penalty provision in the agreementvoid.

(3) “Loan agreement” as used in thissection means a written document issued inconnection with a particular loan which setsforth the terms upon which the loan will bemade. “Loan agreement” does not include amortgage or trust deed which secures apromissory note. Nothing in this sectionshall be deemed to require a lender to issuea loan agreement.



(4) This section does not apply to anyloan agreement executed on or before Sep-tember 13, 1967, or any loan not primarily forpersonal, family or household use. [1967 c.336§§1,2; 1987 c.716 §3]

86.155 Priority of line of credit instru-ment as to certain advances; procedureto limit indebtedness in residential lineof credit instrument. (1) As used in thissection:

(a) “Credit agreement” means any prom-issory note, loan agreement or other agree-ment that provides for advances subsequentto the date of recording of the line of creditinstrument that secures the note or agree-ment.

(b) “Line of credit instrument” means amortgage or trust deed that secures a con-sumer or commercial credit agreement andcreates a lien on specified real property upto a stated amount, provided that the frontpage of the mortgage or trust deed, or amemorandum thereof:

(A) Contains the legend “line of creditmortgage,” “line of credit trust deed” or“line of credit instrument” either in capitalletters or underscored above the body of themortgage or trust deed;

(B) States the maximum principal amountto be advanced pursuant to the credit agree-ment; and

(C) States the term or maturity date, ifany, of the credit agreement exclusive of anyoption to renew or extend the term or matu-rity date.

(c) “Residential line of creditinstrument” means any line of credit instru-ment creating a lien on real property uponwhich are situated or will be constructedfour or fewer residential units, one of which,at the time the credit agreement is enteredinto, is the borrower’s residence or is in-tended, following construction, to be a resi-dence of the borrower.

(2) A line of credit instrument shall havepriority, regardless of the knowledge of thelienholder of any intervening lien, as of itsdate of recording as to the following ad-vances whether the advances are optional orobligatory advances:

(a) Principal advances made any timepursuant to the credit agreement, to the ex-tent the total outstanding advances do notexceed the maximum principal amount statedin the line of credit instrument under sub-section (1)(b)(B) of this section;

(b) Interest, lawful charges and advancesmade any time pursuant to the credit agree-ment for the reasonable protection of thereal property including, but not limited to,advances to pay real property taxes, hazard

insurance premiums, maintenance chargesimposed under a declaration or restrictivecovenant and reasonable attorney fees,whether or not the interest, lawful chargesor advances exceed the maximum principalamount stated in the line of credit instru-ment under subsection (1)(b)(B) of this sec-tion; and

(c) Advances made any time after thedate of recording and pursuant to a creditagreement that is not secured by a residen-tial line of credit instrument to completeconstruction of previously agreed-upon im-provements on the real property, whether ornot the advances exceed the maximum prin-cipal amount stated in the line of credit in-strument under subsection (1)(b)(B) of thissection provided, however, that the frontpage of the instrument states that the maxi-mum principal amount to be advanced pur-suant to the credit agreement may beexceeded by advances to complete construc-tion pursuant to this subsection.

(3) Actions that do not affect the prioritygranted to the advances set forth in subsec-tion (2) of this section shall include, but notbe limited to, those actions set forth in ORS86.095 (1). If any modification to a creditagreement increases the maximum principalamount to be advanced pursuant to thecredit agreement, then principal advancesthat are made that exceed the original maxi-mum principal amount stated in the line ofcredit instrument shall have priority as ofthe date of recording an amendment to theline of credit instrument that states the in-creased maximum principal amount.

(4) In the case of a residential line ofcredit instrument, the debtor may limit theindebtedness secured by that line of creditinstrument to the amount of the credit out-standing by delivering a notice by personalservice upon the lienholder or trust deedbeneficiary or by mailing a notice by certi-fied mail, return receipt requested, to thelienholder or trust deed beneficiary at theaddress given for payment or, if none, to theaddress of the lienholder or trust deed bene-ficiary indicated in the line of credit instru-ment or deed of trust. To be sufficient tolimit indebtedness under this subsection, thenotice must:

(a) State that it is made under this sec-tion;

(b) Contain the legal description in theline of credit instrument or the street ad-dress of the real property;

(c) Provide the information necessary tolocate the line of credit instrument in thepublic record;

(d) State the debtor’s intention to limitthe amount of credit secured by the line of



credit instrument to the amount owed at thetime the notice is received;

(e) State the date sent; and(f) Be signed and acknowledged by all

debtors obligated under the line of credit in-strument.

(5) Not later than the 20th day after re-ceipt of the notice described in subsection (4)of this section, the lienholder or trust deedbeneficiary shall:

(a) Indorse on the notice, or on an ad-dendum to the notice, the principal amountof the indebtedness secured by the line ofcredit instrument on the date the lienholderor trust deed beneficiary received notice;

(b) Sign and acknowledge the notice orthe addendum, if applicable; and

(c) Record the notice and addendum inthe public record where the line of creditinstrument was originally recorded.

(6) If the lienholder or trust deed benefi-ciary fails to record the notice and adden-dum, if applicable, within the time periodspecified in subsection (5) of this section, thedebtor may record the notice in the publicrecord where the line of credit instrumentwas originally recorded, together with proofof receipt by, or personal delivery to, thelienholder or trust deed beneficiary.

(7) Notwithstanding subsection (4) of thissection, the line of credit instrument shallcontinue to have priority as of its date ofrecording as to:

(a) Principal advances, including any ad-vance the creditor is required to honor, thatwere made before a notice under subsection(4) of this section is received;

(b) Interest, lawful charges and advancesdescribed in subsection (2)(b) and (c) of thissection; and

(c) All advances made after a notice un-der subsection (4) of this section is receivedthat are within the amount owed at the timethe notice under subsection (4) of this sec-tion is given. [1987 c.716 §4; 1989 c.198 §1; 1991 c.313§1; 1991 c.438 §1; 1997 c.152 §1; 2001 c.20 §2; 2007 c.71§18]

86.157 Action for residual debt aftershort sale of residential property. (1) Asused in this section:

(a) “Borrower” means an individual who,directly or indirectly and individually or to-gether with another person, is obligated ona real estate loan agreement, including butnot limited to a mortgagor or a grantor, asdefined in ORS 86.705.

(b) “Lender” means a person that makes,extends or holds a real estate loan agree-ment, including but not limited to a

mortgagee or a beneficiary, as defined inORS 86.705.

(c) “Real estate loan agreement” meansan arrangement between a lender and a bor-rower, including but not limited to a mort-gage or a trust deed, by means of which thelender agrees to extend a loan and the bor-rower agrees to secure the loan in whole orin part with residential property, or an in-terest in residential property, that is locatedin this state.

(d) “Residential property” means realproperty upon which is situated four or fewerimprovements designed for residential use,one of which a borrower occupies as theborrower’s residence.

(e) “Residual debt” means an amount dueon a loan, evidence of which exists in a realestate loan agreement, note, bond, contractor similar written agreement, that a bor-rower is unable to pay out of the proceedsfrom a sale of the residential property thatsecures the loan.

(f) “Short sale” means a sale of residen-tial property that is subject to foreclosureunder ORS 86.705 to 86.815 or ORS chapter88 for an amount that is less than the re-maining amount due on the loan that theresidential property secures.

(2) If a lender reports to the Internal Re-venue Service that as a consequence of or inconjunction with a short sale of residentialproperty the lender has canceled all or aportion of a borrower’s debt under a real es-tate loan agreement and the lender providesto the borrower written evidence of thelender’s report to the Internal Revenue Ser-vice, the lender or an assignee of the lendermay not bring an action or otherwise seekpayment for the residual debt following theshort sale. [2011 c.480 §1]

Note: 86.157 was enacted into law by the Legisla-tive Assembly but was not added to or made a part ofORS chapter 86 or any series therein by legislative ac-tion. See Preface to Oregon Revised Statutes for furtherexplanation.

LATE CHARGES86.160 Definitions for ORS 86.160 to

86.185. As used in ORS 86.160 to 86.185:(1) “Late charge” means a sum payable

by a mortgagor to the holder of a mortgagepursuant to a note or mortgage to compen-sate the holder for servicing and other costsattributable to the receipt of mortgage pay-ments from the mortgagor after the dateupon which payment is due.

(2) “Mortgagor” includes the grantor un-der a deed of trust.

(3) “Mortgage” includes a deed of trust.



(4) “Residential real property” means asingle-family, owner-occupied dwelling andappurtenances. [1977 c.427 §1]

86.165 Late charge. No lender may im-pose a late charge:

(1) With respect to any periodic install-ment payment received by it within 15 daysafter the due date. However, if the 15-dayperiod ends on a Saturday, Sunday or legalholiday the 15-day period is extended to thenext business day.

(2) In a dollar amount which exceeds fivepercent of the sum of principal and interestof the delinquent periodic installment pay-ment or the amount provided in the note ormortgage held by the lender, whichever isthe lesser.

(3) Unless the note or mortgage held bythe lender provides for payment of a latecharge on delinquent periodic installmentsand a monthly billing, coupon or notice isprovided by the lender disclosing the date onwhich periodic installments are due and thata late charge may be imposed if payment isnot received by lender within 15 days there-after. However, if the lender and the bor-rower have provided in the note or otherwritten loan agreement that the payments onthe loan shall be made by the means of au-tomatic deductions from a deposit accountmaintained by the borrower, the lender shallnot be required to provide the borrower witha monthly billing, coupon or notice underthis subsection with respect to any occasionon which there are insufficient funds in theborrower’s account to cover the amount of aloan payment on the date the loan paymentbecomes due and within the period describedin subsection (1) of this section.

(4) More than once on any single install-ment. [1977 c.427 §2; 1979 c.101 §1; 1993 c.280 §1]

86.170 Prohibited mortgage provisions.Any provision in a mortgage for a latecharge except as authorized by ORS 86.160to 86.185 shall be invalid. [1977 c.427 §3; 1997c.631 §384]

86.175 Scope. ORS 86.160 to 86.185 shallbe applicable only to late charges on loanssecured by residential real property. [1977c.427 §4]

86.180 ORS 86.160 to 86.185 not appli-cable to certain mortgagees; notice toborrowers. Nothing in ORS 86.160 to 86.185shall pertain to a mortgage banking companyor mortgage servicing company except thatif the terms of the mortgage do not conformto the requirements of ORS 86.165, the bor-rower shall be notified prior to the executionof the mortgage. [1977 c.427 §5]

86.185 ORS 86.160 to 86.185 not appli-cable to certain loans. Nothing in ORS86.160 to 86.185 shall apply to loans insured,guaranteed or purchased by an instrumental-ity of the federal government, whose regu-lations establish late charge limitations. [1977c.427 §6]

REAL ESTATE LOANS; SECURITY PROTECTION

86.205 Definitions for ORS 86.205 to86.275. As used in ORS 86.205 to 86.275:

(1) “Borrower” means any person whobecomes obligated on a real estate loanagreement, either directly or indirectly, andincludes, but is not limited to, mortgagors,grantors under trust deeds, vendees underconditional land sales contracts, and personswho purchase real property that secures areal estate loan agreement, whether the per-sons assume the loan or purchase the prop-erty subject to the loan.

(2) “Direct reduction provision” or “cap-italization provision” means any provisionthat is part of a real estate loan agreement,whether incorporated into the agreement oras part of a separately executed document,under the terms of which the borrowermakes periodic prepayment of property taxes,insurance premiums and similar charges tothe lender or the designee of the lender, whoapplies the prepayments first to accrued in-terest and then to the principal amount ofthe loan, and upon paying the charges, addsthe amount of the payment to the principalamount of the loan.

(3) “Escrow account” means any accountthat is a part of a real estate loan agreement,whether incorporated into the agreement oras part of a separately executed document,into which the borrower makes periodic pre-payment to the lender or the designee of thelender of taxes, insurance premiums, andsimilar charges, and out of which the lenderor the designee of the lender pays thecharges at the due dates.

(4) “Lender” means any person whomakes, extends, or holds a real estate loanagreement and includes, but is not limited to,mortgagees, beneficiaries under trust deeds,and vendors under conditional land salescontracts.

(5) “Lender’s security protection pro-vision” means any provision that is a part ofa real estate loan agreement, whether incor-porated into the agreement or as part of aseparately executed document, under theterms of which the borrower prepays, pledgesor otherwise commits cash or other assetsthe borrower owns in advance of due datesfor payments of property taxes, insurancepremiums and similar charges relating to the



property securing the loan in order to ensuretimely payment of the charges and protectthe lender’s security interest in the property,and includes, but is not limited to, escrowaccounts, direct reduction provisions, cap-italization provisions, and pledges of savingsaccounts.

(6) “Person” means an individual, a cor-poration, an association or a partnership andincludes, but is not limited to, a financialinstitution as defined in ORS 706.008, an in-vestment company, an insurance company, apension fund, or a mortgage company.

(7) “Real estate loan agreement” or “realestate loan” means any agreement that pro-vides for a loan on residential property, in-cluding multifamily property, that theborrower occupies and that is secured inwhole or in part by real property, or any in-terest in real property, that is located in thisstate, and includes, but is not limited to, amortgage, a trust deed or a conditional landsale contract. [1975 c.337 §1; 1997 c.631 §385; 2009c.294 §11; 2013 c.200 §1]

86.210 Types of lender security pro-tection provisions allowed. A lender mayrequire a lender’s security protection pro-vision under ORS 86.205 to 86.275 either asa direct reduction provision, an escrow ac-count, or a pledge of an interest-bearingsavings account in an amount not to exceedthe maximum amount which a lender mayrequire a borrower to deposit in a lender’ssecurity protection provision under ORS86.240 and bearing interest at a rate not lessthan the rate required on lender’s securityprotection provisions by ORS 86.245. [1975c.337 §2; 1987 c.577 §1]

86.214 Application of ORS 86.210 and86.245 to real estate loan agreements. Tothe extent not inconsistent with provisionsof existing real estate loan agreements andprovided such agreements are not silent withregard to a lender’s security protection pro-vision, the provisions of ORS 86.210, 86.245and this section shall apply to real estateloan agreements entered into prior to, on andafter October 1, 1987. To the extent that theprovisions of existing real estate loan agree-ments are inconsistent with the provisionsof ORS 86.210, 86.245 and this section, theexisting real estate loan agreements are si-lent as to a lender’s security protection pro-vision, or any part of ORS 86.210, 86.245 andthis section is declared unconstitutional asto existing real estate loan agreements, theprovisions of ORS 86.205 to 86.275 (1985 Re-placement Part) shall govern and be in fullforce and effect. [1987 c.577 §4]

86.215 [1975 c.337 §§3,4,5; 1985 c.613 §2; repealed by1987 c.577 §5]

86.220 [1975 c.337 §6; repealed by 1987 c.577 §5]86.225 [1975 c.337 §6a; repealed by 1987 c.577 §5]

86.230 [1975 c.337 §6b; repealed by 1987 c.577 §5]86.235 [1975 c.337 §7; repealed by 1987 c.577 §5]

86.240 Limit on amount required insecurity protection escrow account; com-pliance with federal laws for certainloans as compliance with state laws. (1)No lender, in connection with a real estateloan agreement, shall require a borrower orprospective borrower:

(a) To deposit in any escrow accountwhich may be established in connection withthe agreement, prior to or upon the date ofsettlement, a sum in excess of the estimatedtotal amount of property taxes, insurancepremiums, and similar charges which actu-ally will be due and payable on the date ofsettlement, and the pro rata portion thereofwhich has accrued, plus one-sixth of the es-timated total amount of the charges whichwill become due and payable during the12-month period beginning on the date ofsettlement; or

(b) To deposit in any escrow account,which may be established in connection withthe agreement, in any month beginning afterthe date of settlement a sum in excess ofone-sixth of the total amount of estimatedproperty taxes, insurance premiums or simi-lar charges which will become due and pay-able during the 12-month period beginning onthe first day of the month, except that in theevent the lender determines there will be adeficiency on the due date, the lender shallnot be prohibited from requiring additionalmonthly deposits in the escrow account ofpro rata portions of the deficiency corre-sponding to the number of months from thedate of the lender’s determination of the de-ficiency to the date upon which the chargesbecome due and payable.

(2) For real estate loan agreements sub-ject to the federal Real Estate SettlementProcedures Act of 1974 (12 U.S.C. 2601 etseq.) and to Regulation X of the federal De-partment of Housing and Urban Development(24 C.F.R. 3500.1 et seq.), compliance withthe Real Estate Settlement Procedures Actand with Regulation X shall be considered tobe compliance with this section. [1975 c.337 §13;1995 c.182 §1]

86.245 Interest on security protectiondeposits; exception. (1) As used in this sec-tion, “discount rate” means the auction av-erage rate on 91-day United States Treasurybills, as established by the most recent auc-tion of such Treasury bills, as published bythe United States Department of the Treas-ury, Bureau of the Public Debt, less 100 basispoints.

(2) Except as provided in subsections (5)and (7) of this section, any lender who re-quires a lender’s security protection pro-vision in connection with a real estate loan



agreement shall pay interest to the borroweron funds deposited in the account at a ratenot less than the discount rate. The discountrate shall be determined with reference tothe most recent auction date before May 15and November 15 each year.

(3) The rate of interest payable on theaccount shall be adjusted semiannually toreflect changes in the discount rate. Theseadjustments shall be calculated on May 15and November 15 each year. Adjustmentscalculated on May 15 shall take effect on thefollowing July 1, and adjustments calculatedon November 15 shall take effect on the fol-lowing January 1.

(4) Interest shall be computed on the av-erage monthly balance in the account andshall be paid not less than quarterly to theborrower by crediting to the escrow accountthe amount of the interest due.

(5) Except as provided in subsection (6)of this section, this section does not apply toreal estate loan agreements entered intoprior to September 1, 1975, or on which thepayment of interest on a lender’s securityprotection provision violates any state orfederal law or regulation.

(6) If federal law or regulation does notprohibit the payment of interest on a lender’ssecurity protection provision by federallychartered or organized lenders, this sectionapplies to the federally chartered or organ-ized lenders and the state chartered or or-ganized lenders that are similar to thefederally chartered or organized lenders withrespect to a lender’s security protection pro-vision executed in connection with real es-tate loan agreement entered into prior to andin existence on September 1, 1975.

(7) This section does not apply to realestate loan agreements made by, held for saleto or sold to the State of Oregon. [1975 c.337§8; 1979 c.327 §29; 1983 c.492 §1; 1987 c.577 §2; 1995 c.182§2; 1997 c.68 §1; 2005 c.3 §1]

86.250 Service charge prohibited whereinterest required. No lender requiring alender’s security protection provision withrespect to which interest is required to bepaid by the lender under ORS 86.245 shallimpose a service charge in connection withsuch provision. [1975 c.337 §9]

86.255 Arrangements where securityprotection provisions not required; infor-mation to borrower. In any real estate loanagreement with respect to which a lenderdoes not require a lender’s security pro-tection provision, the parties may mutuallyagree to any arrangement whereby the bor-rower prepays, pledges or otherwise commitsassets in advance of due dates for paymentof property taxes, insurance premiums and

similar charges relating to the real propertyin order to assist the borrower in makingtimely payments of the charges. Prior to en-tering any such arrangement, the lendershall furnish the borrower a statement inwriting, which may be set forth in the loanapplication:

(1) That the arrangement is not a condi-tion to the real estate loan agreement;

(2) If it is an escrow account, whether ornot the lender will pay interest and if inter-est is to be paid, the rate of interest; and

(3) Whether or not the borrower mustpay the lender a charge for the service. If acharge is agreed to, the charge shall not ex-ceed the amount of interest income earnedunder subsection (2) of this section. [1975 c.337§10]

86.260 Payment of taxes where secu-rity protection provision required; creditof discount where taxes not paid; causeof action by borrower. (1) If a lender hasa requirement that the borrower pay fundsinto a lender’s security protection provisionfor the payment of property taxes on prop-erty that is the security for the real estateloan agreement, insurance premiums, andsimilar charges, and there are funds in theaccount, the lender shall pay the taxes or theamount in the account if less than the taxesdue, in time to take advantage of any dis-count authorized by ORS 311.505, and allother charges on or before the due dates forpayments.

(2)(a) If the lender fails to pay the taxesin accordance with subsection (1) of thissection resulting in a loss of discount to theborrower, the lender shall credit the lender’ssecurity protection provision in an amountequal to the amount of discount denied onaccount of such failure, together with anyinterest that has accrued on the unpaidproperty taxes to the date the property taxesare finally paid.

(b) If the failure of the lender to complywith subsection (1) of this section is willfuland results in the loss to the borrower of thediscount, or if the failure to comply was notwillful but upon discovery of the failure tocomply and the loss of discount, the lenderfails to credit the lender’s security protectionprovision required by paragraph (a) of thissubsection, the borrower shall have a causeof action against the lender to recover anamount equal to 15 times the amount of dis-count the borrower would have received, to-gether with any interest that accrued on theunpaid property taxes to the date of recov-ery. The court may award reasonable attor-ney fees to the prevailing party in an actionunder this section. [1975 c.337 §11; 1979 c.703 §15;1981 c.897 §18; 1995 c.618 §48]



86.265 Effect of lender violation ofORS 86.205 to 86.275. A violation of ORS86.205 to 86.275 by a lender shall render thelender’s security protection provisionvoidable at the option of the borrower, andthe lender shall be liable to the borrower inan amount equal to:

(1) The borrower’s actual damages or$100, whichever is greater, and

(2) In the case of any successful actionto enforce the foregoing liability, the courtcosts of the action together with reasonableattorney fees at trial and on appeal as deter-mined by the court if the court finds thatwritten demand for the payment of theborrower’s claim was made on the lender notless than 10 days before the commencementof the action. No attorney fees shall be al-lowed to the borrower if the court finds thatthe lender tendered to the borrower, prior tothe commencement of the action, an amountnot less than the damages awarded to theborrower. [1975 c.337 §14; 1981 c.897 §19]

86.270 ORS 86.205 to 86.275 inapplica-ble to certain loan agreements; notice toborrower. ORS 86.205 to 86.275 shall notapply to a real estate loan agreement whichis serviced or held for sale within one yearby a mortgage servicing company neither af-filiated with nor owned in whole or in partby the purchaser and which is made, ex-tended or held by a purchaser whose princi-pal place of business is outside this state;provided that if the purchaser requires alender’s security protection provision, priorto entering into such agreement, the mort-gage servicing company shall furnish theborrower a statement in writing, which maybe set forth in the loan application, that themortgage servicing company is not requiredby the laws of this state to pay interest onthe lender’s security protection provision,and specifically informing the borrower whythe borrower is not entitled to interest onthe account. [1975 c.337 §15]

86.275 Severability. If any section ofORS 86.205 to 86.275, or the application ofany section to any real estate loan agree-ment shall be held invalid, the remainder ofORS 86.205 to 86.275, and the application ofORS 86.205 to 86.275 to any real estate loanagreement other than the one or those towhich it is held invalid, shall not be affectedthereby. [1975 c.337 §12]

86.310 [Amended by 1955 c.21 §1; repealed by 1961c.726 §427]

86.315 [1953 c.700 §2; repealed by 1961 c.726 §427]86.320 [Repealed by 1961 c.726 §427]86.330 [Repealed by 1961 c.726 §427]

86.340 [Repealed by 1961 c.726 §427]

86.350 [Amended by 1955 c.182 §1; repealed by 1961c.726 §427]

86.360 [Repealed by 1961 c.726 §427]86.370 [Amended by 1957 c.404 §1; repealed by 1961

c.726 §427]86.380 [Repealed by 1961 c.726 §427]86.390 [Repealed by 1961 c.726 §427]86.400 [Repealed by 1961 c.726 §427]

CHATTEL MORTGAGES86.405 Secretary of State to furnish

statement of mortgages filed before Sep-tember 1, 1963; fee. Upon the payment of afee of 50 cents for each name to be searchedfor chattel mortgages filed under former ORS86.370 or 86.390, prior to September 1, 1963,the Secretary of State shall furnish to anyperson applying therefor a statement of anymortgages noted on the indexes created un-der former ORS 86.380, or if no mortgagesare noted, a statement to that effect. Allsuch fees received by the Secretary of Stateshall be promptly paid to the State Treasurerand placed in the General Fund. [1961 c.726§409]

86.410 [Repealed by 1961 c.726 §427]86.420 [Repealed by 1961 c.726 §427]86.430 [Repealed by 1961 c.726 §427]

86.440 Discharge of mortgage recordedwith county recording officer. Wheneverany mortgage recorded under the provisionsof ORS 86.350 (1959 Replacement Part) ispaid or otherwise satisfied, it shall be dis-charged by the recording with the recordingofficer of a certificate of such owner, exe-cuted and acknowledged with the same for-malities as are prerequisite to the recordingof any such mortgage, showing the date ofexecution, date of recording, and recordingnumber of the record thereof, and that suchmortgage has been fully discharged. [Amendedby 1999 c.654 §4]

86.450 [Repealed by 1961 c.726 §427]

86.460 Discharge of mortgage filedwith Secretary of State; fee. In the eventof the satisfaction or release of any chattelmortgage, a certified copy of which has beenfiled with the Secretary of State prior toSeptember 1, 1963; the person so satisfyingor releasing the mortgage shall send a dulyexecuted discharge or certified copy thereof,with a fee of 25 cents, to the Secretary ofState, who shall note such discharge in anappropriate column of the index kept by theSecretary of State. All such fees received bythe Secretary of State shall be promptly paidto the State Treasurer and placed in theGeneral Fund. [Amended by 1961 c.726 §407]

86.470 Discharge, assignment andforeclosure of mortgages on chattels reg-istered and licensed by Department ofTransportation. The recording officer ofcounties having less than 50,000 populationon the last day of each calendar month, and



the recording officer of counties having morethan 50,000 population on the last day ofeach calendar week, shall notify the Depart-ment of Transportation, upon forms to beprovided by the department, of the partial orfull satisfaction, assignment or foreclosureduring such period of all mortgages thereto-fore certified to the department prior to Sep-tember 1, 1963, as formerly provided in ORS86.390. The notice shall completely identifythe mortgage so satisfied, assigned or fore-closed; and the department thereupon shallnote on each index margin such satisfaction,assignment or foreclosure. [Amended by 1961c.726 §408]

86.480 [Repealed by 1961 c.726 §427]86.490 [Repealed by 1961 c.726 §427]86.500 [Amended by 1955 c.30 §1; repealed by 1961

c.726 §427]86.510 [Repealed by 1961 c.726 §427]86.520 [Repealed by 1961 c.726 §427]

INVESTMENTS; FEDERAL HOUSING ADMINISTRATOR

86.610 Power of financial institutions,fiduciaries and others to make loans se-cured by property insured by FederalHousing Administrator. Financial insti-tutions as defined in ORS 706.008, trustees,guardians, conservators, executors, adminis-trators, other fiduciaries and all other per-sons, associations and corporations, subjectto the laws of this state, may make suchloans, secured by real property or leasehold,as the Federal Housing Administrator in-sures or makes a commitment to insure, andmay obtain such insurance. [Amended by 1967c.359 §678; 1973 c.823 §93; 1997 c.631 §386]

86.620 Investment of funds of financialinstitutions, fiduciaries and others inbonds and mortgages accepted by FederalHousing Administrator, debentures is-sued thereby, and obligations of nationalmortgage associations. Financial insti-tutions as defined in ORS 706.008, trustees,guardians, conservators, executors, adminis-trators, other fiduciaries and all other per-sons, associations and corporations, subjectto the laws of this state, may invest theirfunds, and the money in their custody orpossession, eligible for investment, in bondsand mortgages on real property insured bythe Federal Housing Administrator, in de-bentures issued by the Federal Housing Ad-ministrator, and in obligations of nationalmortgage associations. [Amended by 1967 c.359§679; 1973 c.823 §94; 1997 c.631 §387]

86.630 Eligibility of securities de-scribed in ORS 86.620 as security for de-posits, investment or reserve ofsecurities. Whenever, by statute, collateralis required as security for the deposit ofpublic or other funds, or deposits are re-

quired to be made with any public official ordepartment, or an investment of capital orsurplus, or a reserve or other fund is re-quired to be maintained consisting of desig-nated securities, the securities described inORS 86.620 shall be eligible for such pur-poses.

86.640 Applicability of other laws re-quiring security or regulating loans andinvestments. No law of this state requiringsecurity upon which loans or investmentsmay be made, or prescribing the nature,amount or form of such security, or pre-scribing or limiting the period for whichloans or investments may be made, shall ap-ply to loans or investments made pursuant toORS 86.610 and 86.620.

TRUST DEEDS(General Provisions)

86.705 Definitions for ORS 86.705 to86.815. As used in ORS 86.705 to 86.815:

(1) “Affordable housing covenant” hasthe meaning given that term in ORS 456.270.

(2) “Beneficiary” means a person namedor otherwise designated in a trust deed asthe person for whose benefit a trust deed isgiven, or the person’s successor in interest,and who is not the trustee unless the benefi-ciary is qualified to be a trustee under ORS86.713 (1)(b)(D).

(3) “Eligible covenant holder” has themeaning given that term in ORS 456.270.

(4) “Grantor” means the person thatconveys an interest in real property by atrust deed as security for the performance ofan obligation.

(5) “Law practice” means a professionalcorporation, partnership, limited liabilitypartnership, limited liability company or soleproprietorship that is engaged in the practiceof law in this state.

(6) “Residential trust deed” means a trustdeed on property upon which are situatedfour or fewer residential units, one of whichthe grantor, the grantor’s spouse or thegrantor’s minor or dependent child occupiesas a principal residence at the time the trustdeed is recorded or, in the case of a purchasemoney loan, one of which is intended to bethe principal residence of the grantor, thegrantor’s spouse or the grantor’s minor ordependent child after the trust deed is re-corded.

(7) “Residential unit” means an improve-ment designed for residential use.

(8) “Trust deed” means a deed executedin conformity with ORS 86.705 to 86.815 thatconveys an interest in real property to atrustee in trust to secure the performance of



an obligation the grantor or other personnamed in the deed owes to a beneficiary.

(9) “Trustee” means a person, other thanthe beneficiary, to whom a trust deed con-veys an interest in real property, or theperson’s successor in interest, or an em-ployee of the beneficiary, if the employee isqualified to be a trustee under ORS 86.713.[1959 c.625 §1; 1961 c.616 §1; 1975 c.618 §1; 1983 c.719 §1;1985 c.817 §1; 1989 c.190 §1; 2011 c.712 §1; 2012 c.112 §5;2013 c.125 §1; 2013 c.465 §4; 2013 c.625 §3]

86.707 Additional definitions for ORS86.726, 86.729, 86.732, 86.736, 86.741, 86.744and 86.748. As used in this section and ORS86.726, 86.729, 86.732, 86.736, 86.741, 86.744and 86.748:

(1) “Facilitator” means a person that aservice provider selects to conduct a resolu-tion conference.

(2) “Foreclosure avoidance measure”means an agreement between a beneficiaryand a grantor that uses one or more of thefollowing methods to modify an obligationthat is secured by a residential trust deed:

(a) The beneficiary defers or forbearsfrom collecting one or more payments due onthe obligation.

(b) The beneficiary modifies, temporarilyor permanently, the payment terms or otherterms of the obligation.

(c) The beneficiary accepts a deed in lieuof foreclosure from the grantor.

(d) The grantor conducts a short sale.(e) The beneficiary provides the grantor

with other assistance that enables thegrantor to avoid a foreclosure.

(3) “Housing counselor” means a counse-lor employed by a nonprofit housing coun-seling agency that the Housing andCommunity Services Department or a suc-cessor state agency approves.

(4) “Resolution conference” means ameeting at which a grantor and a beneficiaryattempt to negotiate and agree upon a fore-closure avoidance measure.

(5) “Service provider” means a personthat the Attorney General appoints underORS 86.741 to coordinate a program to im-plement the provisions of ORS 86.726, 86.729,86.732 and 86.736. [2012 c.112 §2; 2013 c.304 §7]

86.710 Trust deeds authorized to se-cure performance of obligation; methodsof foreclosure after breach. Transfers intrust of an interest in real property may bemade to secure the performance of an obli-gation of a grantor, or any other personnamed in the deed, to a beneficiary. Whereany transfer in trust of an interest in realproperty is made pursuant to the provisionsof ORS 86.705 to 86.815 to secure the per-

formance of an obligation, a power of sale isconferred upon the trustee. The power of salemay be exercised after a breach of the obli-gation for which the transfer is security; anda trust deed, executed in conformity withORS 86.705 to 86.815, may be foreclosed byadvertisement and sale in the manner pro-vided in ORS 86.705 to 86.815, or, at the op-tion of the beneficiary, may be foreclosed bythe beneficiary as provided by law for theforeclosure of mortgages on real property.[1959 c.625 §2; 1961 c.616 §2; 1965 c.457 §1; 1975 c.618 §2;1979 c.879 §1; 1983 c.719 §2; 1987 c.480 §1]

86.713 Qualifications of trustee; cer-tificate of authority to transact business;law practice serving as trustee; appoint-ment of successor trustee; trustee’s du-ties. (1) The trustee of a trust deed underORS 86.705 to 86.815:

(a) Is not required to comply with theprovisions of ORS chapters 707 and 709.

(b) Must be:(A) An attorney who is an active member

of the Oregon State Bar or a law practicethat includes an attorney who is an activemember of the Oregon State Bar;

(B) A financial institution or trust com-pany, as defined in ORS 706.008, that is au-thorized to do business under the laws ofOregon or the United States;

(C) A title insurance company or a sub-sidiary, affiliate, insurance producer orbranch of the title insurance company thatis authorized to insure title to real propertyin this state;

(D) The United States or any agency ofthe United States; or

(E) An escrow agent that is licensed un-der ORS 696.505 to 696.590.

(c) Shall obtain from the Secretary ofState a certificate of authority to transactbusiness in this state as a foreign businessentity, if the trustee is a person described inparagraph (b)(B) or (C) of this subsection,unless the trustee has registered with or ob-tained a certificate of authority from the Di-rector of the Department of Consumer andBusiness Services.

(2) A law practice that, or an attorneywho, is a trustee under subsection (1)(b)(A)of this section may represent the beneficiaryin addition to performing the duties of trus-tee.

(3) At any time after a trust deed is exe-cuted, the beneficiary may appoint in writinganother qualified trustee. If the appointmentof the successor trustee is recorded in themortgage records of the county or countiesin which the trust deed is recorded, the suc-cessor trustee has the powers of the originaltrustee.



(4) A trustee or successor trustee is anecessary and proper party to any proceedingto determine the validity of a trust deed, orto enjoin any private or judicial proceedingto foreclose a trust deed, but a trustee orsuccessor trustee is not a necessary orproper party to any proceeding to determinetitle to the property subject to the trustdeed, or to any proceeding to impose, enforceor foreclose any other lien on the subjectproperty.

(5) The provisions of ORS 86.705 to 86.815do not impose a duty on the trustee or suc-cessor trustee to notify any person of anyproceeding with respect to the person, excepta proceeding that the trustee or successortrustee initiates.

(6) A trustee or the attorney for thetrustee or any agent that the trustee or theattorney designates may announce and ac-cept a bid from the beneficiary whether ornot the beneficiary is present at the sale.

(7) The trustee or successor trustee doesnot have a fiduciary duty or fiduciary obli-gation to the grantor or other persons thathave an interest in the property subject tothe trust deed. The trustee or successortrustee is not relieved of the duty to recon-vey the property that is subject to the trustdeed to the grantor when the beneficiary re-quests a reconveyance.

(8) If a law practice is the trustee undersubsection (1)(b)(A) of this section, an attor-ney who is an active member of the OregonState Bar and is a shareholder, partner,member or employee of the law practice shallsign on the trustee’s behalf any documentthat is permitted or required to be signedunder ORS 86.705 to 86.815. The attorneywho signs the document shall make evidentin the document the attorney’s name andOregon State Bar number and shall state inthe document that the trustee has authorizedthe attorney to sign the document on thetrustee’s behalf.

(9) If an attorney is the trustee undersubsection (1)(b)(A) of this section, anotherattorney who is an active member of the Or-egon State Bar and is a shareholder, partner,member or employee of the law practice inwhich the attorney practices law may signon the trustee’s behalf any document that ispermitted or required to be signed underORS 86.705 to 86.815. The attorney who signsthe document shall make evident in the doc-ument the attorney’s name and Oregon StateBar number and shall state in the documentthat the trustee has authorized the attorneyto sign the document on the trustee’s behalf.[Formerly 86.790]

86.715 Trust deed deemed to be mort-gage on real property; applicability ofmortgage laws. A trust deed is deemed tobe a mortgage on real property and is subjectto all laws relating to mortgages on realproperty except to the extent that such lawsare inconsistent with the provisions of ORS86.705 to 86.815, in which event the pro-visions of ORS 86.705 to 86.815 shall control.For the purpose of applying the mortgagelaws, the grantor in a trust deed is deemedthe mortgagor and the beneficiary is deemedthe mortgagee. [1959 c.625 §21]

86.720 Reconveyance upon perform-ance; liability for failure to reconvey; re-lease of trust deed. (1) Within 30 days afterperformance of the obligation secured by thetrust deed, the beneficiary shall deliver awritten request to the trustee to reconveythe estate of real property described in thetrust deed to the grantor. Within 30 days af-ter the beneficiary delivers the written re-quest to reconvey to the trustee, the trusteeshall reconvey the estate of real propertydescribed in the trust deed to the grantor. Inthe event the obligation is performed and thebeneficiary refuses to request reconveyanceor the trustee refuses to reconvey the prop-erty, the beneficiary or trustee so refusingshall be liable as provided by ORS 86.140 inthe case of refusal to execute a discharge orsatisfaction of a mortgage on real property.The trustee may charge a reasonable fee forall services involved in the preparation, exe-cution and recordation of any reconveyanceexecuted pursuant to this section.

(2) If a full reconveyance of a trust deedhas not been executed and recorded pursuantto the provisions of subsection (1) of thissection within 60 calendar days of the datethe obligation secured by the trust deed wasfully satisfied, then:

(a) If the obligation was satisfied by a ti-tle insurance company or insurance produceror by payment through an escrow transactedby a title insurance company or insuranceproducer, upon the written request of thegrantor or the grantor’s successor in inter-est, the tender of reasonable charges and thecompliance with the notice requirements ofsubsection (3) of this section, the title insur-ance company or insurance producer shallprepare, execute and record a release of trustdeed.

(b) Upon compliance with the notice re-quirements of subsection (3) of this section,any title insurance company or insuranceproducer may prepare, execute and record arelease of trust deed.

(3) Prior to the issuance and recordingof a release pursuant to this section, the titleinsurance company or insurance producershall give notice of the intention to record a



release of trust deed to the beneficiary ofrecord and, if different, the party to whomthe full satisfaction payment was made. Thenotice shall:

(a) Provide that the parties to whom thenotice is sent shall have a period of 30 daysfrom the date of mailing to send to the titleinsurance company or insurance producertheir written objections to the execution andrecording of the release of trust deed;

(b) Be sent by first class mail with post-age prepaid, addressed to the named inter-ested parties at their last-known addresses;and

(c) Identify the trust deed by the nameof the original grantor and any successor ininterest on whose behalf payment was madeand by the recording reference.

(4) The release of trust deed shall reciteon the first page that it has been executedand recorded pursuant to the provisions ofthis section. The release shall be properlyacknowledged and shall set forth:

(a) The name of the beneficiary to whomthe payment was made;

(b) The name of the original grantor ofthe trust deed and any successor in intereston whose behalf payment was made;

(c) The recording reference to the trustdeed that is to be released;

(d) A recital that the obligation securedby the trust deed has been paid in full;

(e) The date and amount of payment;(f) The date of mailing of notice required

by this section; and(g) A recital that no written objections

were received by the title insurance companyor insurance producer.

(5) The release of trust deed executedpursuant to this section shall be entitled torecordation and, when recorded, shall bedeemed to be the equivalent of a reconvey-ance of a trust deed.

(6) The title insurance company or insur-ance producer shall not record or cause tobe recorded a release of trust deed when anyof the following circumstances exist:

(a) The 30-day period following noticegiven under this section has not expired; or

(b) Written objection to such recordationhas been received by the title insurancecompany or insurance producer from any ofthe parties to whom notice was sent.

(7) The trustee, title insurance companyor insurance producer may charge a reason-able fee for all services involved in the prep-

aration, execution, recordation andcompliance with this section, to effect therelease of trust deed.

(8) Subsection (2) of this section does notexcuse the beneficiary or trustee from com-pliance with subsection (1) of this section.

(9) In addition to any other remedy pro-vided by law, a title insurance company orinsurance producer preparing, executing orrecording a release of trust deed shall be li-able to any party for damages that the partysustains by reason of the negligence orwillful misconduct of the title insurancecompany or insurance producer in con-nection with the issuance, execution or re-cording of the release pursuant to thissection. Except as provided in subsection (10)of this section, the court may award reason-able attorney fees to the prevailing party inan action under this section.

(10) The court may not award attorneyfees to a prevailing defendant under the pro-visions of subsection (9) of this section if theaction under this section is maintained as aclass action pursuant to ORCP 32.

(11) As used in this section, “insuranceproducer” means an authorized issuer of titleinsurance policies of a title insurance com-pany who is licensed as an insurance pro-ducer for that purpose pursuant to ORSchapter 744.

(12) Subsections (2) to (11) of this sectionshall be applicable only to full reconveyancesof the property described in the trust deedand not to reconveyances of parts or portionsof the property.

(13) Subsections (1) to (12) of this sectionare applicable to all trust deeds, whether ex-ecuted before, on or after November 4, 1993.

(14) A title insurance company or agentis not required to prepare, execute and re-cord a release of trust deed under subsec-tions (2) to (12) of this section if theobligation secured by the trust deed was sat-isfied prior to November 4, 1993. [1959 c.625§18; 1993 c.648 §2; 1995 c.696 §15; 2001 c.254 §1; 2003 c.364§49]

86.722 Correction of error concerningstatus or effect of trust deed; rights ofbona fide purchaser. (1) To correct an errorconcerning the status or effect of a recordedtrust deed, a person may present an instru-ment to the county clerk for recording in thedeed and mortgage records of the county, andthe county clerk shall record the instrumentif it otherwise meets the requirements for aninstrument to be recorded under ORS chap-ter 205 and is in substantially the followingform:



__________________________________________

CORRECTION OF ERROR(S)IN THE DEED AND MORTGAGE

RECORDS RELATING TOA TRUST DEED

(ORS 86.705 to 86.815)This instrument is recorded to provide noticeof an error relating to:Original Deed of Trust

County clerk instrument record #:Grantor (name):Trustee (name):Beneficiary (name):Assignee(s), if any (name(s)):

The error to be corrected is (check one):[ ] Erroneous reconveyance

of trust deedDate of recording:County clerk instrument record #:

[ ] Erroneous recording ofTrustee’s DeedDate of recording:County clerk instrument record #:

The result of this error correction is (checkone):[ ] The original trust deed is hereby rein-stated; or[ ] The Trustee’s Deed is hereby set aside asthough the erroneous instrument had notbeen recorded.

Date

Name (printed)

Signature

(Beneficiary of original deed of trust)

STATE OF OREGON )) ss.

County of )

The foregoing instrument was acknowl-edged before me this day of

, 2 , by .

Notary Public for OregonMy commission expires:

STATE OF OREGON )) ss.

County of )

The foregoing instrument was acknowl-edged before me this day of

, 2 , by and by of , a corporation on

behalf of the corporation.

Notary Public for OregonMy commission expires:

__________________________________________

(2) Reinstatement of a trust deed basedon the correction of an error under this sec-tion does not affect the rights of a bona fidepurchaser for value or of a bona fide pur-chaser for value holding a security interestin the real property if the purchaser acquiredan interest after the erroneous trust deedreconveyance or trustee’s deed was recordedand before the error was corrected. [2009 c.628§3]

86.725 [1959 c.625 §20; renumbered 86.815 in 2013]

(Foreclosures)86.726 Resolution conference for fore-

closure; exemptions; procedure to requestconference; fee. (1)(a) Except as provided inparagraph (b) of this subsection, a benefici-ary that intends to foreclose a residentialtrust deed shall first request a resolutionconference with the grantor before the bene-ficiary or the trustee files a notice of defaultunder ORS 86.752 or before the beneficiarybrings suit under ORS 88.010.

(b)(A) The requirement to request orparticipate in a resolution conference with agrantor in accordance with subsection (2) or(3) of this section does not apply to a benefi-ciary if the beneficiary submits to the Attor-ney General a sworn affidavit that statesthat during the preceding calendar year thebeneficiary did not commence or cause anaffiliate, subsidiary or agent of the benefici-ary to commence more than 175 actions toforeclose a residential trust deed by adver-tisement and sale under ORS 86.752 or bysuit under ORS 88.010. A beneficiary that isa trustee shall include as part of the totalnumber of foreclosure actions that the bene-ficiary commenced in the previous calendaryear all foreclosure actions that the benefi-ciary commenced under ORS 86.752 or 88.010in the beneficiary’s capacity as a trustee. Abeneficiary that intends to claim an ex-emption under this subparagraph shall sub-mit the affidavit in a form and with thecontents the Attorney General specifies byrule either:

(i) Not later than January 31 in any cal-endar year in which the beneficiary intendsto claim the exemption for the remainder ofthe calendar year; or

(ii) At the time the beneficiary files anotice of default under ORS 86.752 or bringssuit under ORS 88.010.

(B) An exemption under subparagraph(A) of this paragraph expires at the end ofthe calendar year in which the beneficiaryclaims the exemption.



(c) A beneficiary that claims an ex-emption under this subsection is not exemptfrom the requirements set forth in ORS86.748.

(2) The beneficiary shall request a reso-lution conference through the service pro-vider. The beneficiary shall submit therequest to the service provider electronically,by facsimile or by mail and shall submit aprocessing fee in an amount and in a mannerthat the Attorney General specifies by rule.The service provider shall pay to the Attor-ney General, for deposit into the ForeclosureAvoidance Fund established under ORS86.744, moneys the service provider receivesfrom the beneficiary under this subsection.The beneficiary’s request under this subsec-tion must identify the residential trust deedthat the beneficiary intends to foreclose andlist the name, title, address, telephone num-ber and other available contact informationfor:

(a) The beneficiary;(b) Any agent of the beneficiary that will

attend the resolution conference;(c) Any person other than a person iden-

tified in paragraph (a) or (b) of this subsec-tion that will receive, on the beneficiary’sbehalf, notices or other communications re-lated to the resolution conference; and

(d) The grantor.(3)(a) If a beneficiary does not request a

resolution conference under subsection (1) ofthis section, a grantor may request a resolu-tion conference with the beneficiary if:

(A) The beneficiary or the trustee hasnot filed a notice of default under ORS 86.752or the beneficiary has not commenced a suitunder ORS 88.010; and

(B) The grantor first obtains from ahousing counselor a certification in writingthat the grantor is more than 30 days in de-fault on the obligation that the residentialtrust deed secures or, if the grantor is not indefault, that the grantor has a financialhardship that the housing counselor believesmay qualify the grantor for a foreclosureavoidance measure.

(b) A grantor shall request a resolutionconference through the service provider. Thegrantor shall submit the request to the ser-vice provider electronically, by facsimile orby mail and shall enclose with the requestthe written certification the housing counse-lor provides under paragraph (a)(B) of thissubsection. The Attorney General by ruleshall specify the information that the requestmust include.

(c) A beneficiary that receives a noticefrom a service provider after the service

provider receives a request from a grantorunder paragraph (b) of this subsection issubject to the requirements set forth in thissection and ORS 86.729, 86.732, 86.736 and86.748.

(d) This subsection does not apply to abeneficiary that has submitted an affidavitand is exempt under subsection (1)(b) of thissection.

(4) A beneficiary that submitted an affi-davit in accordance with subsection (1)(b) ofthis section may, without waiving the ex-emption the beneficiary claimed in the affi-davit, request a resolution conference with agrantor. The beneficiary shall submit a re-quest under this subsection in accordancewith the requirements set forth in subsection(2) of this section, except that submitting therequest does not require a processing fee.[2013 c.304 §2]

86.729 Scheduling and notice for reso-lution conference; information required;fees; postponement, rescheduling andcancellation; liability of facilitator. (1)(a)Within 10 days after a service provider re-ceives a request for a resolution conferenceunder ORS 86.726, the service provider shallschedule the resolution conference and maila notice to the beneficiary and to thegrantor. The service provider shall schedulethe resolution conference to occur within 75days after the date on which the serviceprovider sends the notice.

(b) A notice under this subsection must:(A) Specify a range of dates within which

and a location at which the resolution con-ference will occur;

(B) State that the beneficiary and thegrantor each must pay the facilitator’s feesfor the resolution conference;

(C) List and describe the documents thatthe beneficiary and the grantor must submitto the service provider;

(D) State that the grantor must consulta housing counselor before attending theresolution conference unless the grantor no-tifies the service provider that the grantorcould not obtain an appointment with ahousing counselor before the date of the res-olution conference;

(E) State that the grantor may have anattorney or housing counselor present torepresent the grantor at the resolution con-ference, and that the attorney or housingcounselor must attend the resolution confer-ence in person unless there are compellingcircumstances that prevent attendance inperson; and

(F) Include any other information theAttorney General requires by rule.



(2) Within 25 days after the date onwhich the service provider sends a noticeunder subsection (1) of this section:

(a) The grantor shall pay a fee to theservice provider in an amount and in a man-ner that the Attorney General specifies byrule. The grantor’s fee may not exceed $200.Within five days after receiving the fee fromthe grantor, the service provider shall senda written notice to the grantor and the ben-eficiary that specifies the date, time and lo-cation of the resolution conference.

(b) The service provider shall pay to theAttorney General, for deposit into the Fore-closure Avoidance Fund established underORS 86.744, moneys the service provider re-ceives from the grantor under paragraph (a)of this subsection.

(c) The grantor shall submit to the ser-vice provider:

(A) Information about the grantor’s in-come, expenses, debts and other obligations;

(B) A description of the grantor’s finan-cial hardship, if any;

(C) Documents that verify the grantor’sincome; and

(D) Any other information the AttorneyGeneral requires by rule.

(3) The grantor shall consult a housingcounselor before attending the resolutionconference unless the grantor cannot obtainan appointment with a housing counselorbefore the date of the resolution conference.

(4) Within 25 days after the service pro-vider makes the information the grantorsubmitted under subsection (2) of this sectionavailable to the beneficiary, the beneficiaryshall:

(a) Pay a fee to the service provider inan amount that is not more than $600 and ina manner that the Attorney General specifiesby rule. The service provider shall pay to theAttorney General, for deposit into the Fore-closure Avoidance Fund established underORS 86.744, moneys the service provider re-ceives from the beneficiary under this para-graph.

(b) Submit to the service provider:(A) Copies of:(i) The residential trust deed; and(ii) The promissory note that is evidence

of the obligation that the residential trustdeed secures and that the beneficiary orbeneficiary’s agent certifies is a true copy;

(B) The name and address of the personthat owns the obligation that is secured bythe residential trust deed;

(C) A record of the grantor’s paymenthistory for the longer of the preceding 12

months or since the beneficiary last deemedthe grantor current on the obligation;

(D) An itemized statement that shows:(i) The amount the grantor owes on the

obligation, itemized to reflect the principal,interest, fees, charges and any other amountsincluded within the obligation; and

(ii) The amount the grantor must pay tocure the grantor’s default;

(E) A document that identifies:(i) The input values for each net present

value model that the beneficiary or thebeneficiary’s agent uses; and

(ii) The output values that each netpresent value model produces;

(F) The appraisal or price opinion thebeneficiary relied on most recently to deter-mine the value of the property that is thesubject of the residential trust deed;

(G) The portion of any pooling agree-ment, servicing agreement or other agree-ment that the beneficiary cites as alimitation or prohibition on modifying theterms of the obligation, together with astatement that describes the extent to whichthe beneficiary sought to have the limitationor prohibition waived;

(H) A description of any additional docu-ments the beneficiary requires to evaluatethe grantor’s eligibility for a foreclosureavoidance measure; and

(I) Any other information the AttorneyGeneral requires by rule.

(5)(a) The service provider may postponeor reschedule a resolution conference thatthe service provider scheduled under subsec-tion (1) of this section if:

(A) The beneficiary and the grantor agreeto a new date;

(B) The beneficiary or the grantor re-quests a new date in writing that is not morethan 30 days after the original date sched-uled for the resolution conference and canshow good cause for the request; or

(C) The beneficiary does not pay the feerequired under subsection (4)(a) of this sec-tion by the date the fee is due. The serviceprovider may wait until the beneficiary haspaid the fee before rescheduling the resolu-tion conference.

(b) The service provider shall cancel aresolution conference that the service pro-vider scheduled under subsection (1) of thissection if the grantor does not pay the feerequired under subsection (2)(a) of this sec-tion by the date the fee is due.

(6)(a) A resolution conference conductedin accordance with this section and ORS86.726, 86.732 and 86.736 is not subject to



ORS chapter 36 and does not preclude medi-ation that a court or another provision oflaw requires.

(b) A facilitator is not subject to a sub-poena and cannot be compelled to testify inany proceeding that is related to a resolutionconference, other than a proceeding againsta facilitator for an act or omission for whichthe facilitator may be liable under paragraph(c) of this subsection.

(c) A facilitator is not civilly liable forany act or omission done or made while en-gaged in efforts to assist or facilitate a reso-lution conference unless the facilitator actedor made an omission in bad faith, with mali-cious intent or in an manner that exhibiteda willful or wanton disregard of the rights,safety or property of another person.

(d) The limitations on liability providedby this subsection apply to the officers, di-rectors, employees and agents of the serviceprovider and any dispute resolution programengaged in facilitating resolution confer-ences.

(e) Information that a beneficiary orgrantor submits under this section is notsubject to ORS 192.410 to 192.505. [2013 c.304§3]

86.730 [1959 c.625 §§17,22; repealed by 1961 c.616 §8]

86.732 Attendance at resolution con-ference; authority of beneficiary’s agent;representation of grantor; terms of fore-closure avoidance measure; report. (1)(a)Except as provided in paragraph (b) of thissubsection, a beneficiary that must requesta resolution conference with a grantor underORS 86.726 shall attend and participate inthe resolution conference in person.

(b)(A) A beneficiary may send an agentto the resolution conference if the agent at-tends the resolution conference in personand has complete authority to negotiate onthe beneficiary’s behalf and commit the ben-eficiary to a foreclosure avoidance measureor, if the agent who attends the resolutionconference in person does not have completeauthority, the beneficiary also requires theparticipation, by remote communication, of aperson who does have complete authority tonegotiate on the beneficiary’s behalf andcommit the beneficiary to a foreclosureavoidance measure.

(B) A grantor may have an attorney or ahousing counselor, or both, present to repre-sent the grantor at the resolution confer-ence, but the grantor, or any individual thata court appoints to act on the grantor’s be-half, must attend the resolution conferencein person unless there are compelling cir-cumstances that prevent attendance in per-son.

(2) If the beneficiary agrees to a foreclo-sure avoidance measure with the grantor, thebeneficiary and the grantor shall sign awritten document that sets forth the termsof the foreclosure avoidance measure.

(3) A facilitator may suspend or postponea resolution conference after the resolutionconference has begun:

(a) One time only on the facilitator’s ini-tiative or in response to a request for a sus-pension or postponement from thebeneficiary or the grantor;

(b) After a suspension or postponementunder paragraph (a) of this subsection onlyif the beneficiary and the grantor agree tothe additional suspension or postponement;or

(c) If the beneficiary or the grantor needsadditional time to write or sign a documentthat sets forth the terms of a foreclosureavoidance measure.

(4) After the resolution conference con-cludes, the facilitator shall submit to theservice provider a written report that:

(a) Lists the date or dates on which theresolution conference occurred;

(b) Lists the name, title, address, tele-phone number and other available contactinformation for each person that participatedin the resolution conference, noting whetherthe person attended the resolution confer-ence in person or participated by remotecommunication;

(c) States whether the beneficiary or theagent of the beneficiary who attended theresolution conference had complete authorityto negotiate and commit to a foreclosureavoidance measure;

(d) Summarizes the terms of the foreclo-sure avoidance measure to which the benefi-ciary and the grantor agreed or notes thatthe beneficiary and the grantor did not agreeto a foreclosure avoidance measure; and

(e) Provides any other information theAttorney General requires by rule. [2013 c.304§4]

86.735 [1959 c.625 §§4,5; 1965 c.457 §2; 1983 c.719 §3;1985 c.817 §2; 1989 c.190 §2; 2012 c.112 §6; 2013 c.304 §10;2013 c.625 §4; renumbered 86.752 in 2013]

86.736 Certificate of compliance; expi-ration. (1)(a) The service provider shall is-sue, within five days after receiving a reportfrom a facilitator under ORS 86.732 (4), acertificate of compliance to a beneficiarythat:

(A) Complied with ORS 86.726, 86.729 and86.732;

(B) Submitted the materials required un-der ORS 86.729 (4) to the service provider;



(C) Appeared in person at, or sent anagent in person to, the resolution conferencewith complete authority to negotiate on thebeneficiary’s behalf and commit the benefici-ary to a foreclosure avoidance measure or, ifthe beneficiary or agent did not have com-plete authority, required the participation byremote communication of a person withcomplete authority to negotiate on thebeneficiary’s behalf and commit the benefici-ary to a foreclosure avoidance measure; and

(D) Signed a document that sets forth theterms of any foreclosure avoidance measureto which the beneficiary and the grantoragreed.

(b) A certificate of compliance expiresone year after the date on which the serviceprovider issues the certificate of complianceunder paragraph (a) of this subsection.

(c) The service provider shall notify abeneficiary that failed to meet a requirementto which the beneficiary was subject underORS 86.726, 86.729 or 86.732 that the serviceprovider will not issue a certificate of com-pliance, explaining in the notice why theservice provider will not issue the certificateof compliance. The service provider shallprovide a copy of the notice under this para-graph to the grantor and to the AttorneyGeneral.

(2) Notwithstanding the requirements setforth in subsection (1) of this section, if aservice provider cancels a resolution confer-ence under ORS 86.729 (5)(b), the serviceprovider shall issue a certificate of compli-ance to the beneficiary within five days aftercanceling the resolution conference. [2013c.304 §5]

86.737 [2008 c.19 §20; 2009 c.864 §§1,4; renumbered86.756 in 2013]

86.739 [2008 c.19 §21; 2009 c.229 §3; renumbered86.761 in 2013]

86.740 [1959 c.625 §6; 1961 c.616 §3; 1965 c.457 §3;1973 c.823 §95; 1979 c.879 §2; 1983 c.719 §4; 1989 c.190 §3;2005 c.129 §1; 2011 c.212 §22; 2012 c.112 §7; 2013 c.304 §11;renumbered 86.764 in 2013]

86.741 Attorney General duties andpowers; payments; rules. (1) The AttorneyGeneral shall:

(a) Appoint and enter into an agreementwith a service provider to coordinate andmanage a program to implement the pro-visions of ORS 86.726, 86.729, 86.732 and86.736.

(b) Enter into an agreement for informa-tion technology goods or services.

(c) Receive affidavits submitted underORS 86.726 (1)(b) and copies of notices sentunder ORS 86.748 (1).

(d) Specify the amount a beneficiary mustpay to the service provider under ORS 86.726(2) and 86.729 (4)(a) and the amount that the

grantor must pay to the service provider un-der ORS 86.729 (2)(a).

(e) Prescribe qualifications, training andexperience requirements for facilitators thatconduct or assist resolution conferences.

(f) Specify procedures and guidelines forconducting a resolution conference.

(g) Adopt additional rules to implementORS 86.726, 86.729, 86.732, 86.736, 86.744 and86.748.

(2) The Attorney General shall pay forthe service provider’s services and for infor-mation technology goods and services fromthe Foreclosure Avoidance Fund establishedunder ORS 86.744. The Attorney General isnot subject to ORS chapter 279A, 279B or279C in appointing a service provider or en-tering into an agreement under subsection(1)(a) or (b) of this section.

(3) In addition to and not in lieu of anyother penalty provided by law, violation ofORS 86.726 (1)(a) or (2), 86.729 (4) or 86.732(1) or (2) by a beneficiary is an unlawfulpractice under ORS 646.607 that is subject toenforcement under ORS 646.632. [2013 c.304 §6]

86.742 [1985 c.817 §9; 1995 c.618 §51; 2012 c.112 §8;renumbered 86.767 in 2013]

86.744 Foreclosure Avoidance Fund.(1) The Foreclosure Avoidance Fund is es-tablished in the State Treasury, separate anddistinct from the General Fund. The Fore-closure Avoidance Fund consists of moneysthe Attorney General collects or receives forthe purpose of paying the expenses of coor-dinating a program to implement the pro-visions of ORS 86.726, 86.729, 86.732 and86.736 and to pay related expenses. Themoneys in the fund are continuously appro-priated to the Attorney General for the pur-poses of paying the expenses of coordinatinga program to implement ORS 86.726, 86.729,86.732 and 86.736 and paying related ex-penses.

(2) The Attorney General may receivemoneys for the purposes set forth in subsec-tion (1) of this section from any public orprivate source. [2012 c.112 §4; 2013 c.304 §8]

Note: Section 18, chapter 304, Oregon Laws 2013,provides:

Sec. 18. The Attorney General may use moneys inthe Foreclosure Avoidance Fund established under sec-tion 4, chapter 112, Oregon Laws 2012 [86.744], to paythe remaining expenses of the program established un-der sections 2 [86.707], 2a, 3, 4 and 4a [86.748], chapter112, Oregon Laws 2012. [2013 c.304 §18]

86.745 [1959 c.625 §7; 1961 c.616 §4; 1965 c.457 §4;1983 c.719 §5; 1985 c.817 §3; 2003 c.251 §4; 2009 c.510 §2;2010 c.28 §§1,2; 2011 c.510 §1; renumbered 86.771 in 2013]

86.748 Determination of ineligibilityfor foreclosure avoidance measure; no-tice; recording; penalty. (1)(a) Whether ornot a beneficiary participates in a resolutionconference under ORS 86.726, if the benefici-



ary determines that a grantor of a residentialtrust deed is not eligible for a foreclosureavoidance measure or that the grantor hasnot complied with the terms of a foreclosureavoidance measure to which the grantor hasagreed, the beneficiary shall mail a writtennotice to the grantor within 10 days aftermaking the determination. The beneficiaryshall mail a copy of the notice to the De-partment of Justice on the same date thatthe beneficiary mails the notice to thegrantor.

(b) The notice described in paragraph (a)of this subsection must in plain language ex-plain the basis for the beneficiary’s determi-nation. The notice and any information inthe notice are not subject to disclosure underORS 192.410 to 192.505.

(c) This subsection does not impose anaffirmative duty on the beneficiary to deter-mine if a grantor is eligible for a foreclosureavoidance measure.

(2) At least five days before the trusteesells the property that is subject to foreclo-sure, the beneficiary shall record in themortgage records in the county or in one ofthe counties in which the property is locatedan affidavit that states that the beneficiaryhas complied with the requirements set forthin subsection (1) of this section.

(3)(a) A beneficiary that fails to substan-tially comply with subsection (1)(b) of thissection, or otherwise fails to comply withsubsection (1)(a) or (2) of this section, is lia-ble to the grantor in the amount of $500 plusthe amount of the grantor’s actual damagesfor each failure.

(b) A grantor may bring an actionagainst a beneficiary in a circuit court ofthis state to recover the amounts describedin paragraph (a) of this subsection. Thegrantor shall commence the action withinone year after the date on which the benefi-ciary should have complied, but did not com-ply, with the provisions of this section.

(c) Notwithstanding an agreement to thecontrary, a court may award reasonable at-torney fees, costs and disbursements to agrantor that obtains a final judgment in thegrantor’s favor. [2012 c.112 §4a; 2013 c.304 §9]

86.750 [1959 c.625 §8; 1961 c.616 §5; 1965 c.457 §5;1979 c.879 §3; 1983 c.719 §6; 1985 c.817 §4; 2007 c.165 §1;2009 c.229 §1; 2009 c.864 §§5,6; 2010 c.28 §§3,4; 2010 c.40§§2,3; renumbered 86.774 in 2013]

86.752 Foreclosure by advertisementand sale. A trustee may not foreclose a trustdeed by advertisement and sale in the man-ner provided in ORS 86.764 to 86.782 unless:

(1) The trust deed, any assignments ofthe trust deed by the trustee or the benefici-ary and any appointment of a successortrustee are recorded in the mortgage records

in the counties in which the property de-scribed in the deed is situated;

(2) There is a default by the grantor orother person that owes an obligation, theperformance of which is secured by the trustdeed, or by the grantor’s or other person’ssuccessors in interest with respect to a pro-vision in the deed that authorizes sale in theevent of default of the provision;

(3) The trustee or beneficiary has filedfor record in the county clerk’s office in eachcounty where the trust property, or somepart of the trust property, is situated, a no-tice of default containing the information re-quired by ORS 86.771 and containing thetrustee’s or beneficiary’s election to sell theproperty to satisfy the obligation;

(4) The beneficiary has filed for recordingin the official records of the county or coun-ties in which the property that is subject tothe residential trust deed is located:

(a) A certificate of compliance that aservice provider issued to the beneficiaryunder ORS 86.736 that is valid and unexpiredat the time the notice of default is recorded;or

(b) A copy of the affidavit with which thebeneficiary claimed, under ORS 86.726 (1)(b),an exemption that has not expired;

(5) The beneficiary has complied with theprovisions of ORS 86.748;

(6) The grantor has not complied withthe terms of any foreclosure avoidancemeasure upon which the beneficiary and thegrantor have agreed; and

(7) An action has not been commenced torecover the debt or any part of the debt thenremaining secured by the trust deed, or, ifan action has been commenced, the actionhas been dismissed, except that:

(a) Subject to ORS 86.010 and the proce-dural requirements of ORCP 79 and 80, anaction may be commenced to appoint a re-ceiver or to obtain a temporary restrainingorder during foreclosure of a trust deed byadvertisement and sale, except that a re-ceiver may not be appointed with respect toa single-family residence that the grantor,the grantor’s spouse or the grantor’s minoror dependent child occupies as a principalresidence.

(b) An action may be commenced toforeclose, judicially or nonjudicially, thesame trust deed as to any other propertycovered by the trust deed, or any other trustdeeds, mortgages, security agreements orother consensual or nonconsensual securityinterests or liens that secure repayment ofthe debt. [Formerly 86.735]

86.753 [1983 c.719 §11; 1985 c.817 §5; 1989 c.190 §4;1999 c.561 §1; renumbered 86.778 in 2013]



86.755 [1959 c.625 §9; 1965 c.457 §6; 1983 c.719 §7;1985 c.817 §6; 1989 c.190 §5; 1989 c.506 §1; 2009 c.883§§1,1a; 2011 c.42 §10; 2011 c.510 §2; 2011 c.712 §2; 2012c.112 §9; 2013 c.76 §1; 2013 c.465 §1; renumbered 86.782 in2013]

86.756 Notice to grantor; require-ments; additional forms; rules. (1) If a no-tice of default is recorded for property thatis subject to a residential trust deed, thesender of a notice of sale under ORS 86.764shall, on or before the date the notice of saleis served or mailed, give notice under thissection to the grantor by both first class andcertified mail with return receipt requested.Subject to any rules adopted under subsec-tion (2) of this section, the notice must be insubstantially the following form and printedin at least 14-point type:__________________________________________

NOTICE:YOU ARE IN DANGER OF LOSINGYOUR PROPERTY IF YOU DO NOT

TAKE ACTION IMMEDIATELYThis notice is about your mortgage loan onyour property at (address).Your lender has decided to sell this propertybecause the money due on your mortgageloan has not been paid on time or becauseyou have failed to fulfill some other obli-gation to your lender. This is sometimescalled “foreclosure.”The amount you would have had to pay asof (date) to bring your mortgage loancurrent was $ . The amount you mustnow pay to bring your loan current may haveincreased since that date.By law, your lender has to provide you withdetails about the amount you owe, if you ask.You may call (telephonenumber) to find out the exact amount youmust pay to bring your mortgage loan cur-rent and to get other details about theamount you owe. You may also get thesedetails by sending a request by certified mailto: .

THIS IS WHEN AND WHEREYOUR PROPERTY WILL BE SOLDIF YOU DO NOT TAKE ACTION:

Date and time: , 2 at

Place:

THIS IS WHAT YOU CAN DOTO STOP THE SALE:

1. You can pay the amount past due or cor-rect any other default, up to five days beforethe sale.

2. You can refinance or otherwise pay off theloan in full anytime before the sale.3. You can call (name) at

(telephone number) to findout if your lender is willing to give you moretime or change the terms of your loan.4. You can sell your home, provided the saleprice is enough to pay what you owe.There are government agencies and nonprofitorganizations that can give you informationabout foreclosure and help you decide whatto do. For the name and telephone numberof an organization near you, please call thestatewide telephone contact number at

. You may also wish to talkto a lawyer. If you need help finding a law-yer, you may call the Oregon State Bar’sLawyer Referral Service at or toll-free in Oregon at oryou may visit its website at: .Legal assistance may be available if you havea low income and meet federal povertyguidelines. For more information and a di-rectory of legal aid programs, go to

.

WARNING: You may get offers from peoplewho tell you they can help you keep yourproperty. You should be careful about thoseoffers. Make sure you understand any pa-pers you are asked to sign. If you have anyquestions, talk to a lawyer or one of the or-ganizations mentioned above before signing.DATED: , 2Trustee name: (print)Trustee signature: Trustee telephone number: __________________________________________

(2) The Department of Consumer andBusiness Services may adopt rules prescrib-ing the format, font size and other physicalcharacteristics of the notice form set forth insubsection (1) of this section. The departmentshall adopt rules specifying the resourcetelephone contact numbers and website ad-dresses the sender is to insert in completingthe notice.

(3) When filling blanks in the notice formset forth in subsection (1) of this section, thesender of the notice shall include, stated inplain language:

(a) The amount of payment that wasneeded to bring the mortgage loan currentas of the date stated in the notice; and

(b) One or more telephone numbers con-sisting of:

(A) A telephone number that will allowthe grantor access during regular businesshours to details regarding the grantor’s loandelinquency and repayment information; and



(B) A telephone number that will allowthe grantor access during regular businesshours to person-to-person consultation withan individual authorized by the beneficiaryto discuss the grantor’s payment and loanterm negotiation and modification options.

(4) Telephone numbers described in sub-section (3) of this section must be toll-freenumbers unless the beneficiary:

(a) Made the loan with the beneficiary’sown money;

(b) Made the loan for the beneficiary’sown investment; and

(c) Is not in the business of making loanssecured by an interest in real estate.

(5) If the sender giving notice under sub-section (1) of this section has actual know-ledge that the grantor is not the occupant ofthe residential real property, the sender shallalso give notice to the occupant of the prop-erty by both first class and certified mailwith return receipt requested. [Formerly 86.737]

86.757 [2003 c.251 §2; renumbered 86.786 in 2013]86.759 [2003 c.251 §3; renumbered 86.789 in 2013]86.760 [1959 c.625 §10; 1961 c.616 §6; 1965 c.457 §7;

1979 c.879 §4; repealed by 1983 c.719 §13]

86.761 Failure to give notice tograntor; remedy. (1) A grantor shall havethe same rights possessed by the holder of ajunior lien or interest who was omitted as aparty defendant in a judicial foreclosure pro-ceeding if:

(a) The notice required by ORS 86.756 isnot sent to the grantor;

(b) The grantor does not actually receivea copy of the notice at least 25 days beforethe date on which the trustee conducts thesale; and

(c) The grantor informs the trustee, thepurchaser, the beneficiary or any loanservicer in writing not later than 60 days af-ter the purchaser takes possession of theproperty upon which a trust deed was fore-closed that the grantor did not receive thenotice and did not have actual notice of thesale.

(2) The purchaser at the trustee’s sale,or the purchaser’s heirs, assigns or trans-ferees, shall have the same rights possessedby a purchaser at a sheriff’s sale following ajudicial foreclosure. [Formerly 86.739]

86.764 Notice of sale for certain per-sons. (1) After recording a notice of defaultas provided in ORS 86.752 and at least 120days before the day the trustee conducts thesale, notice of the sale with the contents de-scribed in ORS 86.771 must be served pursu-ant to ORCP 7 D(2) and 7 D(3) or mailed byboth first class and certified mail with returnreceipt requested.

(2) The notice described in subsection (1)of this section must be served or mailed tothe last-known address of the following per-sons or the legal representatives of the per-sons, if any:

(a) The grantor in the trust deed.(b) Any successor in interest to the

grantor whose interest appears of record, orof whose interest the trustee or the benefici-ary has actual notice.

(c) Any person, including the Departmentof Revenue or another state agency, that hasa lien or interest subsequent to the trustdeed if the lien or interest appears of recordor the beneficiary has actual notice of thelien or interest.

(d) A person that requests notice as pro-vided in ORS 86.806.

(3) A notice served by mail under sub-section (1) of this section is effective whenthe notice is mailed.

(4)(a) The disability, insanity or death ofa person to whom the notice required underthis section must be given does not delay orimpair in any way the trustee’s right undera trust deed to foreclose under the deed. Ifthe disability, insanity or death occurs beforethe notice of default is recorded, the noticerequired under this section must be giveninstead to the guardian, the conservator ofthe estate of the person or the administratoror personal representative of the person inthe manner and by the time set forth in thissection.

(b) If the disability, insanity or death ofa person to whom the notice required underthis section must be given occurs on or afterthe notice of default is recorded, the trusteeshall, if and when the trustee has knowledgeof the disability, insanity or death, promptlygive the guardian, the conservator of the es-tate or the administrator or personal repre-sentative the required notice by sending thenotice by first class and certified mail withreturn receipt requested to the last-knownaddress of the guardian, conservator or ad-ministrator or personal representative.

(c) If there is no administrator or per-sonal representative of the estate of the per-son to whom the notice required under thissection must be given, the notice may begiven instead to the heirs at law or deviseesof the deceased person in the manner and bythe time set forth in this section.

(5) If the owner of real property subjectto foreclosure dies and the real property isalso subject to a transfer on death deed, asprovided by ORS 93.948 to 93.979, the noticerequired under this section must be given tothe beneficiary designated under the transferon death deed. [Formerly 86.740]



86.765 [1959 c.625 §11; 1965 c.457 §8; renumbered86.794 in 2013]

86.767 Failure to give notice of sale;action by omitted person; defense; plead-ing and proving knowledge of sale; attor-ney fees; exclusive remedy. (1) If thetrustee fails to give notice of the sale to aperson entitled to notice under ORS 86.764(2)(c), and the person did not have actualnotice of the sale at least 25 days before thedate on which the trustee conducted the sale,the omitted person has the same rights thatthe holder of a junior lien or interest whowas omitted as a party defendant in a judi-cial foreclosure proceeding possesses, and thepurchaser at the trustee’s sale or thepurchaser’s heirs, assigns or transferees,have the same rights that a purchaser at asheriff’s sale following a judicial foreclosurepossesses.

(2) The omitted person may also com-mence an action against the trustee in thecircuit court in the county where the realproperty is located. In an action against thetrustee, the omitted person is entitled todamages if the omitted person proves that:

(a) The trustee did not give notice of thesale to the omitted person in the manner re-quired by ORS 86.764 (2)(c) and 86.774;

(b) A search of the record under thename of the grantor as the grantor’s nameappears on the trust deed, or as the name ofthe grantor’s successor in interest appears,would have revealed the omitted person’s in-terest;

(c) The omitted person could and wouldhave cured the default under ORS 86.778;and

(d) The omitted person sustained actualdamages as a result of the person’s loss ofthe opportunity to cure the default underORS 86.778 (1).

(3) In an action against the trustee undersubsection (2) of this section, a defendant orthird party defendant may move for dismissalon the ground that the omitted person wouldnot or could not have cured the default andreinstated the trust deed if the omitted per-son had received the notice required by ORS86.764 (2)(c). The court shall hold a hearingon the motion before a hearing on a motionfor summary judgment, and before trying theaction. The court shall deny the motion onlyif the omitted person produces affidavits orother evidence sufficient for a reasonablejury to find, applying a standard of clear andconvincing evidence, that the omitted personhad the financial ability to cure the defaultunder ORS 86.778 before the date of thetrustee’s sale, and that the omitted personwould have done so had the omitted personreceived the notice required by ORS 86.764

(2)(c). If the court grants the motion to dis-miss, the court shall award attorney fees un-der subsection (5) of this section.

(4) In an action against the trustee oranother party under this section the omittedperson shall plead that the omitted persondid not have actual knowledge of the sale atleast 25 days prior to the date the trusteeconducted the sale, but thereafter the de-fendant has the burden of proving that theomitted person did have notice.

(5) In an action brought under this sec-tion, the applicable court may, upon enteringjudgment, allow to the prevailing party as apart of the costs a reasonable amount for at-torney fees at trial and on appeal.

(6) The remedies described in subsections(1) to (5) of this section are the sole remediesavailable to a person entitled to notice offoreclosure by advertisement and sale underORS 86.764 (2)(c), who failed to receive no-tice. The person’s failure to redeem or tocommence an action against the trusteewithin five years of the date of a trustee’ssale under ORS 86.782 bars any action underthis section or any other applicable law.[Formerly 86.742]

86.770 [1959 c.625 §§12,13; 1965 c.457 §9; 1981 c.811§1; 1983 c.719 §8; 1985 c.817 §7; 1989 c.190 §6; 1997 c.786§1; 2007 c.166 §16; 2009 c.883 §2; 2010 c.48 §1; renumbered86.797 in 2013]

86.771 Contents of notice of sale; ad-ditional notices; contents and require-ments. The notice of sale shall:

(1) List the names of the grantor, trusteeand beneficiary in the trust deed, and themailing address of the trustee.

(2) Describe the property the trust deedcovers.

(3) Identify the book and page of themortgage records that record the trust deed.

(4) State the default for which the fore-closure is made.

(5) State the sum owing on the obligationthat the trust deed secures.

(6) State that the property will be sold tosatisfy the obligation.

(7) Set forth the date, time and place ofthe sale.

(8) State that the right exists under ORS86.778 to have the proceeding dismissed andthe trust deed reinstated by paying the entireamount then due, together with costs,trustee’s fees and attorney fees, and by cur-ing any other default complained of in thenotice of default, at any time that is notlater than five days before the date last setfor the sale.

(9) If the property includes one or moredwelling units that are subject to ORS chap-ter 90, include a notice addressed clearly to



any individual who occupies the property andwho is or might be a residential tenant. Thenotice required under this subsection must:

(a) Include contact information for theOregon State Bar and a person or organiza-tion that provides legal help to individualsat no charge to the individual;

(b) Include information concerning theright the individual has to notice under ORS86.782 (6)(c);

(c) Be set apart from other text in thenotice of sale; and

(d) Be in substantially the following form:__________________________________________

NOTICE TO RESIDENTIAL TENANTSThe property in which you are living is

in foreclosure. A foreclosure sale is sched-uled for ________ (date). The date of this salemay be postponed. Unless the lender that isforeclosing on this property is paid beforethe sale date, the foreclosure will go throughand someone new will own this property. Af-ter the sale, the new owner is required toprovide you with contact information andnotice that the sale took place.

The following information applies to youonly if you are a bona fide tenant occupyingand renting this property as a residentialdwelling under a legitimate rental agree-ment. The information does not apply to youif you own this property or if you are not abona fide residential tenant.

If the foreclosure sale goes through, thenew owner will have the right to require youto move out. Before the new owner can re-quire you to move, the new owner must pro-vide you with written notice that specifiesthe date by which you must move out. If youdo not leave before the move-out date, thenew owner can have the sheriff remove youfrom the property after a court hearing. Youwill receive notice of the court hearing.

PROTECTION FROM EVICTIONIF YOU ARE A BONA FIDE TENANT

OCCUPYING AND RENTING THIS PROP-ERTY AS A RESIDENTIAL DWELLING,YOU HAVE THE RIGHT TO CONTINUELIVING IN THIS PROPERTY AFTER THEFORECLOSURE SALE FOR:

• THE REMAINDER OF YOUR FIXEDTERM LEASE, IF YOU HAVE A FIXEDTERM LEASE; OR

• AT LEAST 90 DAYS FROM THEDATE YOU ARE GIVEN A WRITTENTERMINATION NOTICE.

If the new owner wants to move in anduse this property as a primary residence, thenew owner can give you written notice andrequire you to move out after 90 days, even

though you have a fixed term lease withmore than 90 days left.

You must be provided with at least 90days’ written notice after the foreclosure salebefore you can be required to move.

A bona fide tenant is a residential tenantwho is not the borrower (property owner) ora child, spouse or parent of the borrower,and whose rental agreement:

• Is the result of an arm’s-length trans-action;

• Requires the payment of rent that isnot substantially less than fair market rentfor the property, unless the rent is reducedor subsidized due to a federal, state or localsubsidy; and

• Was entered into prior to the date ofthe foreclosure sale.

ABOUT YOUR TENANCYBETWEEN NOW AND THE

FORECLOSURE SALE: RENTYOU SHOULD CONTINUE TO PAY

RENT TO YOUR LANDLORD UNTIL THEPROPERTY IS SOLD OR UNTIL A COURTTELLS YOU OTHERWISE. IF YOU DONOT PAY RENT, YOU CAN BE EVICTED.BE SURE TO KEEP PROOF OF ANY PAY-MENTS YOU MAKE.

SECURITY DEPOSITYou may apply your security deposit and

any rent you paid in advance against thecurrent rent you owe your landlord as pro-vided in ORS 90.367. To do this, you mustnotify your landlord in writing that you wantto subtract the amount of your security de-posit or prepaid rent from your rent pay-ment. You may do this only for the rent youowe your current landlord. If you do this,you must do so before the foreclosure sale.The business or individual who buys thisproperty at the foreclosure sale is not re-sponsible to you for any deposit or prepaidrent you paid to your landlord.

ABOUT YOUR TENANCYAFTER THE FORECLOSURE SALEThe new owner that buys this property

at the foreclosure sale may be willing to al-low you to stay as a tenant instead of re-quiring you to move out after 90 days or atthe end of your fixed term lease. After thesale, you should receive a written notice in-forming you that the sale took place andgiving you the new owner’s name and con-tact information. You should contact the newowner if you would like to stay. If the newowner accepts rent from you, signs a newresidential rental agreement with you ordoes not notify you in writing within 30 daysafter the date of the foreclosure sale that youmust move out, the new owner becomes your



new landlord and must maintain the prop-erty. Otherwise:

• You do not owe rent;• The new owner is not your landlord

and is not responsible for maintaining theproperty on your behalf; and

• You must move out by the date thenew owner specifies in a notice to you.

The new owner may offer to pay yourmoving expenses and any other costs oramounts you and the new owner agree on inexchange for your agreement to leave thepremises in less than 90 days or before yourfixed term lease expires. You should speakwith a lawyer to fully understand your rightsbefore making any decisions regarding yourtenancy.

IT IS UNLAWFUL FOR ANY PERSONTO TRY TO FORCE YOU TO LEAVEYOUR DWELLING UNIT WITHOUT FIRSTGIVING YOU WRITTEN NOTICE ANDGOING TO COURT TO EVICT YOU. FORMORE INFORMATION ABOUT YOURRIGHTS, YOU SHOULD CONSULT ALAWYER. If you believe you need legal as-sistance, contact the Oregon State Bar andask for the lawyer referral service. Contactinformation for the Oregon State Bar is in-cluded with this notice. If you do not haveenough money to pay a lawyer and are oth-erwise eligible, you may be able to receivelegal assistance for free. Information aboutwhom to contact for free legal assistance isincluded with this notice.__________________________________________

[Formerly 86.745]Note: The amendments to 86.771 (formerly 86.745)

by section 6, chapter 510, Oregon Laws 2011, becomeoperative January 1, 2015. See section 9, chapter 510,Oregon Laws 2011. The text that is operative on andafter January 1, 2015, is set forth for the user’s con-venience.

86.771. The notice of sale shall:(1) List the names of the grantor, trustee and ben-

eficiary in the trust deed, and the mailing address of thetrustee.

(2) Describe the property the trust deed covers.(3) Identify the book and page of the mortgage re-

cords that record the trust deed.(4) State the default for which the foreclosure is

made.(5) State the sum owing on the obligation that the

trust deed secures.(6) State that the property will be sold to satisfy

the obligation.(7) Set forth the date, time and place of the sale.(8) State that the right exists under ORS 86.778 to

have the proceeding dismissed and the trust deed rein-stated by paying the entire amount then due, togetherwith costs, trustee’s fees and attorney fees, and by cur-ing any other default complained of in the notice ofdefault, at any time that is not later than five days be-fore the date last set for the sale.

(9) If the property includes one or more dwellingunits that are subject to ORS chapter 90, include a no-tice addressed clearly to any individual who occupiesthe property and who is or might be a residential ten-ant. The notice required under this subsection must:

(a) Include contact information for the OregonState Bar and a person or organization that provideslegal help to individuals at no charge to the individual;

(b) Include information concerning the right theindividual has to notice under ORS 86.782 (6)(c);

(c) Be set apart from other text in the notice ofsale; and

(d) Be in substantially the following form:__________________________________________

NOTICE TO RESIDENTIAL TENANTSThe property in which you are living is in foreclo-

sure. A foreclosure sale is scheduled for ________ (date).The date of this sale may be postponed. Unless thelender that is foreclosing on this property is paid beforethe sale date, the foreclosure will go through andsomeone new will own this property. After the sale, thenew owner is required to provide you with contact in-formation and notice that the sale took place.

The following information applies to you only ifyou are a bona fide tenant occupying and renting thisproperty as a residential dwelling under a legitimaterental agreement. The information does not apply toyou if you own this property or if you are not a bonafide residential tenant.

If the foreclosure sale goes through, the new ownerwill have the right to require you to move out. Beforethe new owner can require you to move, the new ownermust provide you with written notice that specifies thedate by which you must move out. If you do not leavebefore the move-out date, the new owner can have thesheriff remove you from the property after a courthearing. You will receive notice of the court hearing.

PROTECTION FROM EVICTIONIF YOU ARE A BONA FIDE TENANT OCCUPY-

ING AND RENTING THIS PROPERTY AS A RESI-DENTIAL DWELLING, YOU HAVE THE RIGHT TOCONTINUE LIVING IN THIS PROPERTY AFTER THEFORECLOSURE SALE FOR:

• 60 DAYS FROM THE DATE YOU ARE GIVENA WRITTEN TERMINATION NOTICE, IF YOU HAVEA FIXED TERM LEASE; OR

• AT LEAST 30 DAYS FROM THE DATE YOUARE GIVEN A WRITTEN TERMINATION NOTICE, IFYOU HAVE A MONTH-TO-MONTH OR WEEK-TO-WEEK RENTAL AGREEMENT.

If the new owner wants to move in and use thisproperty as a primary residence, the new owner cangive you written notice and require you to move outafter 30 days, even though you have a fixed term leasewith more than 30 days left.

You must be provided with at least 30 days’ writtennotice after the foreclosure sale before you can be re-quired to move.

A bona fide tenant is a residential tenant who isnot the borrower (property owner) or a child, spouse orparent of the borrower, and whose rental agreement:

• Is the result of an arm’s-length transaction;

• Requires the payment of rent that is not sub-stantially less than fair market rent for the property,unless the rent is reduced or subsidized due to a federal,state or local subsidy; and

• Was entered into prior to the date of the fore-closure sale.



ABOUT YOUR TENANCYBETWEEN NOW AND THE

FORECLOSURE SALE: RENTYOU SHOULD CONTINUE TO PAY RENT TO

YOUR LANDLORD UNTIL THE PROPERTY IS SOLDOR UNTIL A COURT TELLS YOU OTHERWISE. IFYOU DO NOT PAY RENT, YOU CAN BE EVICTED.BE SURE TO KEEP PROOF OF ANY PAYMENTSYOU MAKE.

SECURITY DEPOSITYou may apply your security deposit and any rent

you paid in advance against the current rent you oweyour landlord as provided in ORS 90.367. To do this,you must notify your landlord in writing that you wantto subtract the amount of your security deposit or pre-paid rent from your rent payment. You may do this onlyfor the rent you owe your current landlord. If you dothis, you must do so before the foreclosure sale. Thebusiness or individual who buys this property at theforeclosure sale is not responsible to you for any de-posit or prepaid rent you paid to your landlord.

ABOUT YOUR TENANCYAFTER THE FORECLOSURE SALE

The new owner that buys this property at theforeclosure sale may be willing to allow you to stay asa tenant instead of requiring you to move out after 30or 60 days. After the sale, you should receive a writtennotice informing you that the sale took place and givingyou the new owner’s name and contact information.You should contact the new owner if you would like tostay. If the new owner accepts rent from you, signs anew residential rental agreement with you or does notnotify you in writing within 30 days after the date ofthe foreclosure sale that you must move out, the newowner becomes your new landlord and must maintainthe property. Otherwise:

• You do not owe rent;• The new owner is not your landlord and is not

responsible for maintaining the property on your behalf;and

• You must move out by the date the new ownerspecifies in a notice to you.

The new owner may offer to pay your moving ex-penses and any other costs or amounts you and the newowner agree on in exchange for your agreement to leavethe premises in less than 30 or 60 days. You shouldspeak with a lawyer to fully understand your rightsbefore making any decisions regarding your tenancy.

IT IS UNLAWFUL FOR ANY PERSON TO TRYTO FORCE YOU TO LEAVE YOUR DWELLING UNITWITHOUT FIRST GIVING YOU WRITTEN NOTICEAND GOING TO COURT TO EVICT YOU. FOR MOREINFORMATION ABOUT YOUR RIGHTS, YOUSHOULD CONSULT A LAWYER. If you believe youneed legal assistance, contact the Oregon State Bar andask for the lawyer referral service. Contact informationfor the Oregon State Bar is included with this notice.If you do not have enough money to pay a lawyer andare otherwise eligible, you may be able to receive legalassistance for free. Information about whom to contactfor free legal assistance is included with this notice.__________________________________________

86.774 Service and publication of no-tice; recording proof of compliance. (1)(a)Except as provided in paragraph (b) of thissubsection, the notice prescribed in ORS86.771 must be served upon an occupant ofthe property described in the trust deed inthe manner in which a summons is servedpursuant to ORCP 7 D(2) and 7 D(3) at least

120 days before the day the trustee conductsthe sale.

(b)(A) If service cannot be effected on anoccupant as provided in paragraph (a) of thissubsection on the first attempt, the personthat attempts to effect service shall post acopy of the notice in a conspicuous place onthe property on the date of the first attempt.The person that attempts to effect serviceshall make a second attempt to effect serviceon a day that is at least two days after thefirst attempt.

(B) If service cannot be effected on anoccupant as provided in paragraph (a) of thissubsection on the second attempt, the personthat attempts to effect service shall post acopy of the notice in a conspicuous place onthe property on the date of the second at-tempt. The person that attempts to effectservice shall make a third attempt to effectservice on a day that is at least two days af-ter the second attempt.

(C) If service cannot be effected on anoccupant as provided in paragraph (a) of thissubsection on the third attempt, the personthat attempts to effect service shall send acopy of the notice, bearing the word “occu-pant” as the addressee, to the property ad-dress by first class mail with postage prepaid.

(c) Service on an occupant is effected onthe earlier of the date that notice is servedas provided in paragraph (a) of this subsec-tion or the first date on which notice isposted as described in paragraph (b)(A) ofthis subsection.

(2)(a) Except as provided in paragraph (b)of this subsection, a copy of the notice ofsale must be published in a newspaper ofgeneral circulation in each of the counties inwhich the property is situated once a weekfor four successive weeks. The last publica-tion must be made more than 20 days priorto the date the trustee conducts the sale.

(b) The copy of the notice of sale re-quired to be published under paragraph (a)of this subsection does not need to includethe notice to tenants required under ORS86.771 (9).

(3) At or before the time the trusteeconducts the sale, the trustee shall file forrecording in the official record of the countyor counties in which the property describedin the deed is situated the following affida-vits with respect to the notice of sale:

(a) An affidavit of mailing, if any;(b) An affidavit of service, if any;(c) An affidavit of service attempts and

posting, if any; and(d) An affidavit of publication.(4) At or before the time the trustee

conducts the sale, the trustee shall file for



recording in the official record of the countyor counties in which the property describedin the deed is situated an affidavit of mailingwith respect to the notice to the grantor re-quired under ORS 86.756. [Formerly 86.750]

86.775 [1959 c.625 §14; renumbered 86.800 in 2013]

86.778 Discontinuance of foreclosureproceedings after cure of default. (1)Where a trustee has commenced foreclosureof a trust deed by advertisement and sale,the grantor, the grantor’s successor in inter-est to all or any part of the trust property,any beneficiary under a subordinate trustdeed, or any person having a subordinate lienor encumbrance of record on the property,may cure the default or defaults at any timeprior to five days before the date last set forthe sale. If the default consists of a failureto pay, when due, sums secured by the trustdeed, the default may be cured by paying theentire amount due at the time of cure underthe terms of the obligation, other than suchportion as would not then be due had no de-fault occurred. Any other default of the trustdeed obligation that is capable of being curedmay be cured by tendering the performancerequired under the obligation or trust deed.In any case, and in addition to paying thesums or tendering the performance necessaryto cure the default, the person effecting thecure shall pay to the beneficiary all costsand expenses actually incurred in enforcingthe obligation and trust deed, together withtrustee’s and attorney fees in the amount of:

(a) A total of $1,000 for both trustee’sfees and attorney fees, or the amount actu-ally charged by the trustee and attorney,whichever is less, if the trust deed is a resi-dential trust deed; or

(b) Reasonable attorney fees and trustee’sfees actually charged by the trustee and at-torney if the trust deed is not a residentialtrust deed. Any person entitled to cure thedefault may, either before or after rein-statement, request any court of competentjurisdiction to determine the reasonablenessof the fee demanded or paid as a conditionof reinstatement. The court may award at-torney fees to the prevailing party. An actionto determine reasonable attorney fees ortrustee’s fees under this section shall notforestall any sale or affect its validity.

(2) After cure of the default under sub-section (1) of this section, all proceedingsunder ORS 86.764 to 86.782 shall be dis-missed by the trustee, and the obligation andtrust deed shall be reinstated and shall re-main in force the same as if no accelerationhad occurred. [Formerly 86.753]

86.780 [1959 c.625 §15; 1983 c.719 §12; 1985 c.565 §8;2009 c.229 §2; renumbered 86.803 in 2013]

86.782 Sale of property; obtaining pos-session after sale; procedures; notices;requirements for postponing orrescinding sale. (1)(a) A trustee shall holda trustee’s sale on the date and at the timeand place designated in the notice of salegiven under ORS 86.764. The designated timeof the trustee’s sale must be after 9 a.m. andbefore 4 p.m., based on the standard of timeset forth in ORS 187.110, and the designatedplace of the trustee’s sale must be in thecounty or one of the counties in which theproperty is situated. Except as provided inparagraph (b) of this subsection, the trusteemay sell the property in one parcel or inseparate parcels and shall sell the parcel orparcels at auction to the highest bidder forcash. Any person, including the beneficiaryunder the trust deed, but excluding the trus-tee, may bid at the trustee’s sale. An attor-ney for the trustee, or an agent that thetrustee or the attorney designates, may con-duct the sale and act in the sale as thetrustee’s auctioneer.

(b) If the trustee sells property uponwhich a single residential unit that is subjectto an affordable housing covenant is situated,the eligible covenant holder may purchasethe property from the trustee at the trustee’ssale for cash or cash equivalent in anamount that is the lesser of:

(A) The sum of the amounts payable un-der ORS 86.794 (1) and (2); or

(B) The highest bid received for theproperty other than a bid from the eligiblecovenant holder.

(c)(A) Except as provided in subpara-graph (B) of this paragraph, if an eligiblecovenant holder purchases the property inaccordance with paragraph (b) of this sub-section, the sale forecloses and terminates allother interests in the property as provided inORS 86.797 (1).

(B) If an interest in the property existsthat is prior to the eligible covenant holder’sinterest, other than the interest set forth inthe trust deed that was the subject of theforeclosure proceeding under ORS 86.752,notwithstanding the provisions of ORS 86.797(1) the sale does not foreclose and terminatethe prior interest and the eligible covenantholder’s title to the property is subject to theprior interest.

(2)(a) The trustee or the attorney for thetrustee, or an agent that the trustee or theattorney designates, may postpone the salefor one or more periods that total not morethan 180 days from the original sale date,giving notice of each postponement by publicproclamation made at the time and place setfor sale. The trustee, the attorney or anagent that the trustee or the attorney desig-nates may make the proclamation.



(b) If a person postpones the sale date asprovided in paragraph (a) of this subsection,the trustee, in the manner provided for thenotice of sale under ORS 86.764 (1), shallprovide written notice of the new time, dateand place for the sale to the grantor and toany person to whom notice of the sale wasgiven under ORS 86.771. The notice must begiven at least 15 days before the new saledate. The person may postpone the sale once,for not more than two calendar days, withoutgiving notice as provided in this paragraph.The person may not postpone the sale formore than two calendar days or more thanonce without giving notice as provided inthis paragraph.

(3) The purchaser shall pay at the timeof sale the price bid or the price determinedin accordance with subsection (1)(b) of thissection, and, within 10 days following pay-ment, the trustee shall execute and deliverthe trustee’s deed to the purchaser.

(4)(a) Within 10 calendar days after thedate of the trustee’s sale, the trustee mayrescind the trustee’s sale and void thetrustee’s deed only if:

(A) The trustee asserts that during thetrustee’s sale a bona fide error occurred in:

(i) Setting, advertising or otherwise spec-ifying the opening bid amount for the prop-erty that is the subject of the trustee’s sale;

(ii) Providing a correct legal descriptionof the property that is the subject of thetrustee’s sale; or

(iii) Complying with a requirement orprocedure that is imposed by law;

(B) The grantor and the beneficiaryagreed to a foreclosure avoidance measure,as defined in ORS 86.707, that would post-pone or discontinue the trustee’s sale; or

(C) The beneficiary accepted funds toreinstate the trust deed and obligation in ac-cordance with ORS 86.778, even if the bene-ficiary did not have a legal duty to do so.

(b) Within 10 calendar days after the dateof the trustee’s sale that the trustee re-scinded under paragraph (a) of this subsec-tion, the trustee shall provide notice of therescission of the trustee’s sale to any personto whom notice of the sale was given. Thetrustee shall mail or serve notice of therescission in the manner provided for servingor mailing the notice of sale under ORS86.764 (1). The notice of rescission must:

(A) Display the date on which the trusteemailed the notice, served the notice or deliv-ered the notice for service; and

(B) State that, and explain why, thetrustee rescinded the trustee’s sale andvoided the trustee’s deed.

(c) Not later than three calendar daysafter the date displayed on the rescissionnotice described in paragraph (b) of this sub-section, the trustee shall refund to the pur-chaser the amount the purchaser paid for theproperty that is the subject of the rescissionnotice.

(d) If the trustee rescinded a trustee’ssale and voided a trustee’s deed in accor-dance with this subsection, the trustee, notlater than 21 days after the date of thetrustee’s sale that resulted in the rescission,shall present for recording an affidavit thatstates that the trustee provided the notice ofrescission described in paragraph (b) of thissubsection. The affidavit must identify thetrust deed that was subject to the rescindedtrustee’s sale and the voided trustee’s deed.

(e) The trustee’s deed conveys to thepurchaser the interest in the property thatthe grantor had, or had the power to convey,at the time the grantor executed the trustdeed, together with any interest the grantoror the grantor’s successors in interest ac-quire after the execution of the trust deed.

(5)(a) If property purchased at thetrustee’s sale includes one or more dwellingunits that are subject to ORS chapter 90, thepurchaser must provide written notice of thechange in ownership to the occupants ofeach unit within 30 days after the date ofsale and before or concurrently with serviceof a written termination notice authorized bysubsection (6)(c)(B) of this section.

(b) The notice required by this subsectionmust:

(A) Explain that the dwelling unit hasbeen sold at a foreclosure sale and that thepurchaser at the foreclosure sale is the newowner.

(B) Include the date on which the fore-closure sale took place.

(C) Include the name, contact addressand contact telephone number of the pur-chaser or the purchaser’s representative.

(D) Provide information about the rightsof bona fide residential tenants as providedin subsections (6)(c) and (e) and (9)(a) of thissection.

(E) Include contact information for theOregon State Bar and a person or organiza-tion that provides legal help to individualsat no charge to the individual.

(c) The notice must be served by one ormore of the following methods:

(A) Personal delivery to the tenant.(B) First class mail to the tenant at the

dwelling unit.(C) First class mail to the tenant at the

dwelling unit and attachment of a second



notice copy. The second notice copy must beattached in a secure manner to the main en-trance to the portion of the premises in thepossession of the tenant.

(D) If the purchaser does not know thenames of the tenants, the notice may be ad-dressed to “occupants.”

(d) A notice that contains the informa-tion required under paragraph (b)(B) and (C)of this subsection meets the requirements ofparagraph (b) of this subsection if the noticeis in substantially the following form:__________________________________________

NOTICE TO RESIDENTIAL TENANTS OFCHANGE IN OWNERSHIP

The property in which you are living hasgone through foreclosure and was sold to anew owner on ________ (date). The contactinformation for the new owner or theowner’s representative is ______________(name, address, telephone number).

IF YOU ARE A BONA FIDE TENANTRENTING THIS PROPERTY AS A RESI-DENTIAL DWELLING, YOU HAVE THERIGHT TO CONTINUE LIVING IN THISPROPERTY AFTER THE FORECLOSURESALE FOR:

• THE REMAINDER OF YOUR FIXEDTERM LEASE, IF YOU HAVE A FIXEDTERM LEASE; OR

• AT LEAST 90 DAYS FROM THEDATE YOU ARE GIVEN A WRITTENTERMINATION NOTICE.

If the new owner wants to move in anduse this property as a primary residence, thenew owner can give you written notice andrequire you to move out after 90 days, eventhough you have a fixed term lease withmore than 90 days left.

You must be provided with at least 90days’ written notice after the foreclosure salebefore you can be required to move.

A bona fide tenant is a residential tenantwho is not the borrower (property owner), ora child, spouse or parent of the borrower,and whose rental agreement:

• Is the result of an arm’s-length trans-action;

• Requires the payment of rent that isnot substantially less than fair market rentfor the property, unless the rent is reducedor subsidized due to a federal, state or localsubsidy; and

• Was entered into prior to the date ofthe foreclosure sale.

IMPORTANT:

YOU SHOULD CONTACT THE NEWOWNER OR THE OWNER’S REPRESEN-TATIVE AT THE ADDRESS LISTED ONTHIS NOTICE AS SOON AS POSSIBLE TOLET THE NEW OWNER KNOW IF YOUARE A BONA FIDE TENANT. YOUSHOULD PROVIDE WRITTEN EVIDENCEOF THE EXISTENCE OF YOUR RENTALAGREEMENT, ESPECIALLY IF YOUHAVE A FIXED TERM RENTAL AGREE-MENT OR LEASE WITH MORE THAN 90DAYS LEFT. Written evidence of your rentalagreement can be a copy of your lease orrental agreement, or other documentation ofthe existence of your rental agreement. Keepyour original documents and a record of anyinformation you give to the new owner.

YOUR TENANCYBETWEEN NOW

AND THE MOVE-OUT DATEThe new owner may be willing to allow

you to stay as a tenant instead of requiringyou to move out after 90 days or at the endof your fixed term lease. You should contactthe new owner if you would like to stay. Ifthe new owner accepts rent from you, signsa new residential rental agreement with youor does not notify you in writing within 30days after the date of the foreclosure salethat you must move out, the new owner be-comes your new landlord and must maintainthe property. Otherwise:

• You do not owe rent;• The new owner is not your landlord

and is not responsible for maintaining theproperty; and

• You must move out by the date thenew owner specifies in a notice to you.

The new owner may offer to pay yourmoving expenses and any other costs oramounts you and the new owner agree on inexchange for your agreement to leave thepremises in less than 90 days or before yourfixed term lease expires. You should speakwith a lawyer to fully understand your rightsbefore making any decisions regarding yourtenancy.

IT IS UNLAWFUL FOR ANY PERSONTO TRY TO FORCE YOU TO LEAVEYOUR DWELLING UNIT WITHOUT FIRSTGIVING YOU WRITTEN NOTICE ANDGOING TO COURT TO EVICT YOU. FORMORE INFORMATION ABOUT YOURRIGHTS, YOU SHOULD CONSULT ALAWYER. If you believe you need legal as-sistance, contact the Oregon State Bar andask for the lawyer referral service. Contactinformation for the Oregon State Bar is in-cluded with this notice. If you do not haveenough money to pay a lawyer and are oth-erwise eligible, you may be able to receivelegal assistance for free. Information about



whom to contact for free legal assistance isincluded with this notice.__________________________________________

(6)(a) Except as provided in paragraph (b)or (c) of this subsection, the purchaser at thetrustee’s sale is entitled to possession of theproperty on the 10th day after the sale. Aperson that remains in possession after the10th day under any interest, except an inter-est prior to the trust deed, or an interest thegrantor or a successor of the grantor createdvoluntarily, is a tenant at sufferance. Thepurchaser may obtain possession of the prop-erty from a tenant at sufferance by followingthe procedures set forth in ORS 105.105 to105.168 or other applicable judicial proce-dure.

(b) Except as provided in paragraph (c)of this subsection, at any time after thetrustee’s sale the purchaser may follow theprocedures set forth in ORS 105.105 to105.168 or other applicable judicial procedureto obtain possession of the property from aperson that holds possession under an inter-est that the grantor or a successor of thegrantor created voluntarily if, not earlierthan 30 days before the date first set for thesale, the person was served with not lessthan 30 days’ written notice of the require-ment to surrender or deliver possession ofthe property.

(c) If the property purchased at thetrustee’s sale includes a dwelling unit that issubject to ORS chapter 90 and an individualoccupies the unit under a bona fide tenancy,the purchaser may obtain possession by fol-lowing the procedures set forth in ORS105.105 to 105.168 and by using the complaintform provided in ORS 105.124 or 105.126:

(A) After the fixed term of the tenancyexpires, if the bona fide tenancy is a fixedterm tenancy as defined in ORS 90.100; or

(B) At least 90 days after service of awritten termination notice if the bona fidetenancy is:

(i) A fixed term tenancy and the pur-chaser intends to occupy, as the purchaser’sprimary residence, the dwelling unit that issubject to the fixed term tenancy; or

(ii) A month-to-month tenancy or week-to-week tenancy, as those terms are definedin ORS 90.100.

(d) If a purchaser gives a 90-day writtentermination notice pursuant to paragraph (c)of this subsection, the purchaser may includein the notice a request that a tenant with afixed term tenancy provide written evidenceof the existence of the tenancy to the pur-chaser at an address described in the notice.Written evidence includes a copy of therental agreement or another document that

shows the existence of the fixed termtenancy. The tenant’s failure to provide therequested written evidence before the pur-chaser files an action for possession based ona 90-day notice:

(A) Does not prevent the tenant from as-serting the existence of the fixed termtenancy as a defense to the action.

(B) Prevents the tenant from recoveringprevailing party attorney fees or costs anddisbursements pursuant to subsection (11)(b)of this section. The 90-day notice must de-scribe the provisions of this paragraph.

(e) A purchaser may not commence aproceeding under ORS 105.105 to 105.168 thatis authorized under this subsection beforethe later of:

(A) The 10th day after the trustee’s sale;(B) The date specified in a written notice

of the requirement to surrender or deliverpossession of the property if the notice is re-quired by and is given to the person in ac-cordance with paragraph (b) of thissubsection;

(C) The date specified in a written noticeof the purchaser’s intent to terminate atenancy if the notice is required by and isgiven to the person in accordance with para-graph (c) of this subsection; or

(D) The date on which the term of a fixedterm tenancy ends, if the property is adwelling unit and the purchaser has not ter-minated the tenancy in accordance with par-agraph (c) of this subsection.

(f) A purchaser that seeks to obtain pos-session pursuant to ORS 105.105 to 105.168must attach proof of service of a writtentermination notice required by paragraph (c)of this subsection to the pleadings.

(g) In an action to obtain possession, vi-olation of the procedures required by subsec-tion (5) of this section or paragraph (c) ofthis subsection is a defense for a bona fidetenant seeking to retain possession.

(h) As used in this subsection, “bona fidetenancy” means tenancy of a dwelling unitthat is subject to ORS chapter 90 that resultsfrom an arm’s-length transaction that oc-curred before the date of a foreclosure salein which:

(A) The mortgagor or the child, spouseor parent of the mortgagor under the con-tract is not the tenant; and

(B) The rent required is not substantiallyless than fair market rent for the dwellingunit, unless the rent is reduced or subsidizeddue to a federal, state or local subsidy.

(7) A purchaser shall serve a notice un-der subsection (6) of this section by one ormore of the following methods:



(a) Personal delivery to the tenant.(b) First class mail to the tenant at the

dwelling unit.(c) First class mail to the tenant at the

dwelling unit and attachment of a secondnotice copy. The second notice copy must beattached in a secure manner to the main en-trance to the portion of the premises in thepossession of the tenant.

(8) If the notice under subsection (6) ofthis section is served by mail pursuant tosubsection (7)(b) of this section, the minimumperiod for compliance must be extended bythree days and the notice must include theextension in the period stated in the notice.

(9)(a) Notwithstanding the provisions ofsubsection (6)(c) of this section and exceptas provided in paragraph (b) of this subsec-tion, the purchaser is not a landlord subjectto the provisions of ORS chapter 90 unlessthe purchaser:

(A) Accepts rent from the individual whopossesses the property under a tenancy de-scribed in subsection (6)(c) of this section;

(B) Enters into a new rental agreementwith the individual who possesses the prop-erty under a tenancy described in subsection(6)(c) of this section; or

(C) Fails to terminate the tenancy asprovided in subsection (6)(c) of this sectionwithin 30 days after the date of the sale.

(b) The purchaser may act as a landlordfor purposes of terminating a tenancy in ac-cordance with the provisions of ORS 90.396.

(c) The purchaser is subject to the pro-visions of ORS 90.322, 90.375, 105.165,659A.421 and 659A.425. The application ofORS 90.375 to a purchaser that does not be-come a landlord does not impose an affirma-tive duty to pay for or provide services. Forthe purpose of damages pursuant to this par-agraph, “rent” refers to the amount the ten-ant pays to the landlord for the right tooccupy the unit before the foreclosure.

(10)(a) Except as provided in paragraph(b) of this subsection, the purchaser is notliable to the individual who possesses theproperty under a tenancy described in sub-section (6)(c) of this section for:

(A) Damage to the property ordiminution in rental value; or

(B) Returning a security deposit.(b) A purchaser that is a landlord under

the provisions of subsection (9)(a) of thissection is liable to the individual who pos-sesses the property under a tenancy de-scribed in subsection (6)(c) of this section for:

(A) Damage to the property ordiminution in rental value that occurs afterthe date of the trustee’s sale; or

(B) Returning a security deposit the in-dividual pays after the date of the trustee’ssale.

(11)(a) Except as provided in paragraph(b) of this subsection and notwithstanding anagreement to the contrary, in an action ordefense arising pursuant to subsection (6)(c),(d), (f) or (g), (7) or (9)(c) of this section,reasonable attorney fees at trial and on ap-peal may be awarded to the prevailing partytogether with costs and disbursements.

(b) If a tenant asserts a successful de-fense to an action for possession pursuant tosubsection (6)(c), (d), (f) or (g) of this section,the tenant is not entitled to prevailing partyfees, attorney fees or costs and disburse-ments if the purchaser:

(A) Did not know, and did not have rea-sonable cause to know, of the existence of afixed term tenancy when commencing theaction for possession; and

(B) Promptly dismissed the action uponbecoming aware of the existence of a fixedterm tenancy.

(c) As used in this subsection, “prevailingparty” means the party in whose favor finaljudgment is rendered.

(12)(a) Notwithstanding subsection (2)(a)of this section, except when a beneficiary hasparticipated in obtaining a stay, foreclosureproceedings that are stayed by order of thecourt, by proceedings in bankruptcy or forany other lawful reason shall, after releasefrom the stay, continue as if uninterrupted,if within 30 days after release the trusteesends amended notice of sale by registeredor certified mail to the last-known addressof the persons listed in ORS 86.764 and86.774 (1).

(b) In addition to the notice required un-der paragraph (a) of this subsection, thetrustee shall send amended notice of sale:

(A) By registered or certified mail to:(i) The address provided by each person

who was present at the time and place setfor the sale that was stayed; and

(ii) The address provided by each memberof the Oregon State Bar who by registeredor certified mail requests the amended noticeof sale and includes with the request the no-tice of default or an identification numberfor the trustee’s sale that would assist thetrustee in identifying the property subject tothe trustee’s sale and a self-addressed,stamped envelope measuring at least 8.5 by11 inches in size; or

(B) By posting a true copy or a link to atrue copy of the amended notice of sale onthe trustee’s Internet website.

(c) The amended notice of sale must:



(A) Be given at least 15 days before theamended date of sale;

(B) Set an amended date of sale that maybe the same as the original sale date, or dateto which the sale was postponed, providedthe requirements of this paragraph and ORS86.764 and 86.774 are satisfied;

(C) Specify the time and place for sale;(D) Conform to the requirements of ORS

86.771; and(E) State that the original sale pro-

ceedings were stayed and the date the stayterminated.

(d) If the publication of the notice of salewas not completed before the date the fore-closure proceedings were stayed by order ofthe court, by proceedings in bankruptcy orfor any other lawful reason, after releasefrom the stay, in addition to complying withthe provisions of paragraphs (b) and (c) ofthis subsection, the trustee shall completethe publication by publishing an amendednotice of sale that states that the notice hasbeen amended following release from the stayand that contains the amended date of sale.The amended notice must be published in anewspaper of general circulation in each ofthe counties in which the property is situ-ated once a week for four successive weeks,except that the required number of publica-tions must be reduced by the number of pub-lications that were completed before theeffective date of the stay. The last publica-tion must be made more than 20 days beforethe date the trustee conducts the sale.

(e) If a portion of the defaults specifiedin the original notice of default or in the or-iginal notice of sale was cured during thetime the foreclosure proceedings were stayed,or if additional defaults have occurred duringthat time, the trustee shall describe in theamended notice of sale only those defaultsthat existed on the date on which the staywas terminated.

(f) After a release from a stay of pro-ceedings, the trustee or the attorney for thetrustee, or an agent that the trustee or theattorney designates, may postpone a sale forone or more periods that total not more thanthe greater of 60 days or the portion of the180-day period allowed for postponement un-der subsection (2)(a) of this section that re-mained on the day before the stay began. Apostponement under this paragraph mustcomply with the procedural and notice re-quirements specified in subsection (2) of thissection. [Formerly 86.755]

Note: The amendments to 86.782 (formerly 86.755)by section 7, chapter 510, Oregon Laws 2011, becomeoperative January 1, 2015. See section 9, chapter 510,Oregon Laws 2011. The text that is operative on andafter January 1, 2015, including amendments by section

10, chapter 112, Oregon Laws 2012, section 2, chapter 76,Oregon Laws 2013, and section 2, chapter 465, OregonLaws 2013, is set forth for the user’s convenience.

86.782. (1)(a) A trustee shall hold a trustee’s saleon the date and at the time and place designated in thenotice of sale given under ORS 86.764. The designatedtime of the trustee’s sale must be after 9 a.m. and before4 p.m., based on the standard of time set forth in ORS187.110, and the designated place of the trustee’s salemust be in the county or one of the counties in whichthe property is situated. Except as provided in para-graph (b) of this subsection, the trustee may sell theproperty in one parcel or in separate parcels and shallsell the parcel or parcels at auction to the highest bid-der for cash. Any person, including the beneficiary un-der the trust deed, but excluding the trustee, may bidat the trustee’s sale. An attorney for the trustee, or anagent that the trustee or the attorney designates, mayconduct the sale and act in the sale as the trustee’sauctioneer.

(b) If the trustee sells property upon which a singleresidential unit that is subject to an affordable housingcovenant is situated, the eligible covenant holder maypurchase the property from the trustee at the trustee’ssale for cash or cash equivalent in an amount that isthe lesser of:

(A) The sum of the amounts payable under ORS86.794 (1) and (2); or

(B) The highest bid received for the property otherthan a bid from the eligible covenant holder.

(c)(A) Except as provided in subparagraph (B) ofthis paragraph, if an eligible covenant holder purchasesthe property in accordance with paragraph (b) of thissubsection, the sale forecloses and terminates all otherinterests in the property as provided in ORS 86.797 (1).

(B) If an interest in the property exists that is priorto the eligible covenant holder’s interest, other than theinterest set forth in the trust deed that was the subjectof the foreclosure proceeding under ORS 86.752, not-withstanding the provisions of ORS 86.797 (1) the saledoes not foreclose and terminate the prior interest andthe eligible covenant holder’s title to the property issubject to the prior interest.

(2)(a) The trustee or the attorney for the trustee,or an agent that the trustee or the attorney designates,may postpone the sale for one or more periods thattotal not more than 180 days from the original saledate, giving notice of each postponement by publicproclamation made at the time and place set for sale.The trustee, the attorney or an agent that the trusteeor the attorney designates may make the proclamation.

(b) If a person postpones the sale date as providedin paragraph (a) of this subsection, the trustee, in themanner provided for the notice of sale under ORS 86.764(1), shall provide written notice of the new time, dateand place for the sale to the grantor and to any personto whom notice of the sale was given under ORS 86.771.The notice must be given at least 15 days before thenew sale date. The person may postpone the sale once,for not more than two calendar days, without givingnotice as provided in this paragraph. The person maynot postpone the sale for more than two calendar daysor more than once without giving notice as provided inthis paragraph.

(3) The purchaser shall pay at the time of sale theprice bid or the price determined in accordance withsubsection (1)(b) of this section, and, within 10 daysfollowing payment, the trustee shall execute and deliverthe trustee’s deed to the purchaser.

(4)(a) Within 10 calendar days after the date of thetrustee’s sale, the trustee may rescind the trustee’s saleand void the trustee’s deed only if:

(A) The trustee asserts that during the trustee’ssale a bona fide error occurred in:



(i) Setting, advertising or otherwise specifying theopening bid amount for the property that is the subjectof the trustee’s sale;

(ii) Providing a correct legal description of theproperty that is the subject of the trustee’s sale; or

(iii) Complying with a requirement or procedurethat is imposed by law;

(B) The grantor and the beneficiary agreed to aforeclosure avoidance measure, as defined in ORS86.707, that would postpone or discontinue the trustee’ssale; or

(C) The beneficiary accepted funds to reinstate thetrust deed and obligation in accordance with ORS86.778, even if the beneficiary did not have a legal dutyto do so.

(b) Within 10 calendar days after the date of thetrustee’s sale that the trustee rescinded under paragraph(a) of this subsection, the trustee shall provide noticeof the rescission of the trustee’s sale to any person towhom notice of the sale was given. The trustee shallmail or serve notice of the rescission in the mannerprovided for serving or mailing the notice of sale underORS 86.764 (1). The notice of rescission must:

(A) Display the date on which the trustee mailedthe notice, served the notice or delivered the notice forservice; and

(B) State that, and explain why, the trustee re-scinded the trustee’s sale and voided the trustee’s deed.

(c) Not later than three calendar days after thedate displayed on the rescission notice described inparagraph (b) of this subsection, the trustee shall refundto the purchaser the amount the purchaser paid for theproperty that is the subject of the rescission notice.

(d) If the trustee rescinded a trustee’s sale andvoided a trustee’s deed in accordance with this subsec-tion, the trustee, not later than 21 days after the dateof the trustee’s sale that resulted in the rescission, shallpresent for recording an affidavit that states that thetrustee provided the notice of rescission described inparagraph (b) of this subsection. The affidavit mustidentify the trust deed that was subject to the rescindedtrustee’s sale and the voided trustee’s deed.

(e) The trustee’s deed conveys to the purchaser theinterest in the property that the grantor had, or had thepower to convey, at the time the grantor executed thetrust deed, together with any interest the grantor or thegrantor’s successors in interest acquire after the exe-cution of the trust deed.

(5)(a) If property purchased at the trustee’s saleincludes one or more dwelling units that are subject toORS chapter 90, the purchaser must provide writtennotice of the change in ownership to the occupants ofeach unit within 30 days after the date of sale and be-fore or concurrently with service of a written termi-nation notice authorized by subsection (6)(c)(B) of thissection.

(b) The notice required by this subsection must:(A) Explain that the dwelling unit has been sold

at a foreclosure sale and that the purchaser at theforeclosure sale is the new owner.

(B) Include the date on which the foreclosure saletook place.

(C) Include the name, contact address and contacttelephone number of the purchaser or the purchaser’srepresentative.

(D) Provide information about the rights of bonafide residential tenants as provided in subsections (6)(c)and (e) and (9)(a) of this section.

(E) Include contact information for the OregonState Bar and a person or organization that provideslegal help to individuals at no charge to the individual.

(c) The notice must be served by one or more of thefollowing methods:

(A) Personal delivery to the tenant.(B) First class mail to the tenant at the dwelling

unit.(C) First class mail to the tenant at the dwelling

unit and attachment of a second notice copy. The sec-ond notice copy must be attached in a secure mannerto the main entrance to the portion of the premises inthe possession of the tenant.

(D) If the purchaser does not know the names ofthe tenants, the notice may be addressed to“occupants.”

(d) A notice that contains the information requiredunder paragraph (b)(B) and (C) of this subsection meetsthe requirements of paragraph (b) of this subsection ifthe notice is in substantially the following form:__________________________________________

NOTICE TO RESIDENTIAL TENANTS OFCHANGE IN OWNERSHIP

The property in which you are living has gonethrough foreclosure and was sold to a new owner on________ (date). The contact information for the newowner or the owner’s representative is _____________(name, address, telephone number).

IF YOU ARE A BONA FIDE TENANT RENTINGTHIS PROPERTY AS A RESIDENTIAL DWELLING,YOU HAVE THE RIGHT TO CONTINUE LIVING INTHIS PROPERTY AFTER THE FORECLOSURE SALEFOR:

• 60 DAYS FROM THE DATE YOU ARE GIVENA WRITTEN TERMINATION NOTICE, IF YOU HAVEA FIXED TERM LEASE; OR

• AT LEAST 30 DAYS FROM THE DATE YOUARE GIVEN A WRITTEN TERMINATION NOTICE, IFYOU HAVE A MONTH-TO-MONTH ORWEEK-TO-WEEK RENTAL AGREEMENT.

If the new owner wants to move in and use thisproperty as a primary residence, the new owner cangive you written notice and require you to move outafter 30 days, even though you have a fixed term leasewith more than 30 days left.

You must be provided with at least 30 days’ writtennotice after the foreclosure sale before you can be re-quired to move.

A bona fide tenant is a residential tenant who isnot the borrower (property owner), or a child, spouseor parent of the borrower, and whose rental agreement:

• Is the result of an arm’s-length transaction;• Requires the payment of rent that is not sub-

stantially less than fair market rent for the property,unless the rent is reduced or subsidized due to a federal,state or local subsidy; and

• Was entered into prior to the date of the fore-closure sale.

IMPORTANT:YOU SHOULD CONTACT THE NEW OWNER OR

THE OWNER’S REPRESENTATIVE AT THE AD-DRESS LISTED ON THIS NOTICE AS SOON AS POS-SIBLE TO LET THE NEW OWNER KNOW IF YOUARE A BONA FIDE TENANT. YOU SHOULD PRO-VIDE WRITTEN EVIDENCE OF THE EXISTENCE OFYOUR RENTAL AGREEMENT, ESPECIALLY IF YOUHAVE A FIXED TERM RENTAL AGREEMENT ORLEASE WITH MORE THAN 30 DAYS LEFT. Writtenevidence of your rental agreement can be a copy of yourlease or rental agreement, or other documentation ofthe existence of your rental agreement. Keep your ori-



ginal documents and a record of any information yougive to the new owner.

YOUR TENANCYBETWEEN NOW

AND THE MOVE-OUT DATEThe new owner may be willing to allow you to stay

as a tenant instead of requiring you to move out after30 or 60 days. You should contact the new owner if youwould like to stay. If the new owner accepts rent fromyou, signs a new residential rental agreement with youor does not notify you in writing within 30 days afterthe date of the foreclosure sale that you must move out,the new owner becomes your new landlord and mustmaintain the property. Otherwise:

• You do not owe rent;• The new owner is not your landlord and is not

responsible for maintaining the property; and• You must move out by the date the new owner

specifies in a notice to you.The new owner may offer to pay your moving ex-

penses and any other costs or amounts you and the newowner agree on in exchange for your agreement to leavethe premises in less than 30 or 60 days. You shouldspeak with a lawyer to fully understand your rightsbefore making any decisions regarding your tenancy.

IT IS UNLAWFUL FOR ANY PERSON TO TRYTO FORCE YOU TO LEAVE YOUR DWELLING UNITWITHOUT FIRST GIVING YOU WRITTEN NOTICEAND GOING TO COURT TO EVICT YOU. FOR MOREINFORMATION ABOUT YOUR RIGHTS, YOUSHOULD CONSULT A LAWYER. If you believe youneed legal assistance, contact the Oregon State Bar andask for the lawyer referral service. Contact informationfor the Oregon State Bar is included with this notice.If you do not have enough money to pay a lawyer andare otherwise eligible, you may be able to receive legalassistance for free. Information about whom to contactfor free legal assistance is included with this notice.__________________________________________

(6)(a) Except as provided in paragraph (b) or (c)of this subsection, the purchaser at the trustee’s sale isentitled to possession of the property on the 10th dayafter the sale. A person that remains in possession afterthe 10th day under any interest, except an interest priorto the trust deed, or an interest the grantor or a suc-cessor of the grantor created voluntarily, is a tenant atsufferance. The purchaser may obtain possession of theproperty from a tenant at sufferance by following theprocedures set forth in ORS 105.105 to 105.168 or otherapplicable judicial procedure.

(b) Except as provided in paragraph (c) of thissubsection, at any time after the trustee’s sale the pur-chaser may follow the procedures set forth in ORS105.105 to 105.168 or other applicable judicial procedureto obtain possession of the property from a person thatholds possession under an interest that the grantor ora successor of the grantor created voluntarily if, notearlier than 30 days before the date first set for the sale,the person was served with not less than 30 days’ writ-ten notice of the requirement to surrender or deliverpossession of the property.

(c) If the property purchased at the trustee’s saleincludes a dwelling unit that is subject to ORS chapter90 and an individual occupies the unit under a bonafide tenancy, the purchaser may obtain possession byfollowing the procedures set forth in ORS 105.105 to105.168 and by using the complaint form provided inORS 105.124 or 105.126:

(A) At least 60 days after service of a written ter-mination notice, if the bona fide tenancy is a fixed termtenancy as defined in ORS 90.100; or

(B) At least 30 days after service of a written ter-mination notice if the bona fide tenancy is:

(i) A fixed term tenancy and the purchaser intendsto occupy, as the purchaser’s primary residence, thedwelling unit that is subject to the fixed term tenancy;or

(ii) A month-to-month tenancy or week-to-weektenancy, as those terms are defined in ORS 90.100.

(d) If a purchaser gives a 30-day written termi-nation notice pursuant to paragraph (c) of this subsec-tion, the purchaser may include in the notice a requestthat a tenant with a fixed term tenancy provide writtenevidence of the existence of the tenancy to the pur-chaser at an address described in the notice. Writtenevidence includes a copy of the rental agreement oranother document that shows the existence of the fixedterm tenancy. The tenant’s failure to provide the re-quested written evidence before the purchaser files anaction for possession based on a 30-day notice:

(A) Does not prevent the tenant from asserting theexistence of the fixed term tenancy as a defense to theaction.

(B) Prevents the tenant from recovering prevailingparty attorney fees or costs and disbursements pursuantto subsection (11)(b) of this section. The 30-day noticemust describe the provisions of this paragraph.

(e) A purchaser may not commence a proceedingunder ORS 105.105 to 105.168 that is authorized underthis subsection before the later of:

(A) The 10th day after the trustee’s sale;(B) The date specified in a written notice of the

requirement to surrender or deliver possession of theproperty if the notice is required by and is given to theperson in accordance with paragraph (b) of this sub-section;

(C) The date specified in a written notice of thepurchaser’s intent to terminate a tenancy if the noticeis required by and is given to the person in accordancewith paragraph (c) of this subsection; or

(D) The date on which the term of a fixed termtenancy ends, if the property is a dwelling unit and thepurchaser has not terminated the tenancy in accordancewith paragraph (c) of this subsection.

(f) A purchaser that seeks to obtain possessionpursuant to ORS 105.105 to 105.168 must attach proofof service of a written termination notice required byparagraph (c) of this subsection to the pleadings.

(g) In an action to obtain possession, violation ofthe procedures required by subsection (5) of this sectionor paragraph (c) of this subsection is a defense for abona fide tenant seeking to retain possession.

(h) As used in this subsection, “bona fide tenancy”means tenancy of a dwelling unit that is subject to ORSchapter 90 that results from an arm’s-length transactionthat occurred before the date of a foreclosure sale inwhich:

(A) The mortgagor or the child, spouse or parentof the mortgagor under the contract is not the tenant;and

(B) The rent required is not substantially less thanfair market rent for the dwelling unit, unless the rentis reduced or subsidized due to a federal, state or localsubsidy.

(7) A purchaser shall serve a notice under subsec-tion (6) of this section by one or more of the followingmethods:

(a) Personal delivery to the tenant.(b) First class mail to the tenant at the dwelling

unit.(c) First class mail to the tenant at the dwelling

unit and attachment of a second notice copy. The sec-ond notice copy must be attached in a secure manner



to the main entrance to the portion of the premises inthe possession of the tenant.

(8) If the notice under subsection (6) of this sectionis served by mail pursuant to subsection (7)(b) of thissection, the minimum period for compliance must beextended by three days and the notice must include theextension in the period stated in the notice.

(9)(a) Notwithstanding the provisions of subsection(6)(c) of this section and except as provided in para-graph (b) of this subsection, the purchaser is not alandlord subject to the provisions of ORS chapter 90unless the purchaser:

(A) Accepts rent from the individual who possessesthe property under a tenancy described in subsection(6)(c) of this section;

(B) Enters into a new rental agreement with theindividual who possesses the property under a tenancydescribed in subsection (6)(c) of this section; or

(C) Fails to terminate the tenancy as provided insubsection (6)(c) of this section within 30 days after thedate of the sale.

(b) The purchaser may act as a landlord for pur-poses of terminating a tenancy in accordance with theprovisions of ORS 90.396.

(c) The purchaser is subject to the provisions ofORS 90.322, 90.375, 105.165, 659A.421 and 659A.425. Theapplication of ORS 90.375 to a purchaser that does notbecome a landlord does not impose an affirmative dutyto pay for or provide services. For the purpose of dam-ages pursuant to this paragraph, “rent” refers to theamount the tenant pays to the landlord for the right tooccupy the unit before the foreclosure.

(10)(a) Except as provided in paragraph (b) of thissubsection, the purchaser is not liable to the individualwho possesses the property under a tenancy describedin subsection (6)(c) of this section for:

(A) Damage to the property or diminution in rentalvalue; or

(B) Returning a security deposit.(b) A purchaser that is a landlord under the pro-

visions of subsection (9)(a) of this section is liable tothe individual who possesses the property under atenancy described in subsection (6)(c) of this section for:

(A) Damage to the property or diminution in rentalvalue that occurs after the date of the trustee’s sale; or

(B) Returning a security deposit the individualpays after the date of the trustee’s sale.

(11)(a) Except as provided in paragraph (b) of thissubsection and notwithstanding an agreement to thecontrary, in an action or defense arising pursuant tosubsection (6)(c), (d), (f) or (g), (7) or (9)(c) of this sec-tion, reasonable attorney fees at trial and on appealmay be awarded to the prevailing party together withcosts and disbursements.

(b) If a tenant asserts a successful defense to anaction for possession pursuant to subsection (6)(c), (d),(f) or (g) of this section, the tenant is not entitled toprevailing party fees, attorney fees or costs and dis-bursements if the purchaser:

(A) Did not know, and did not have reasonablecause to know, of the existence of a fixed term tenancywhen commencing the action for possession; and

(B) Promptly dismissed the action upon becomingaware of the existence of a fixed term tenancy.

(c) As used in this subsection, “prevailing party”means the party in whose favor final judgment is ren-dered.

(12)(a) Notwithstanding subsection (2)(a) of thissection, except when a beneficiary has participated inobtaining a stay, foreclosure proceedings that are

stayed by order of the court, by proceedings in bank-ruptcy or for any other lawful reason shall, after re-lease from the stay, continue as if uninterrupted, ifwithin 30 days after release the trustee sends amendednotice of sale by registered or certified mail to thelast-known address of the persons listed in ORS 86.764and 86.774 (1).

(b) In addition to the notice required under para-graph (a) of this subsection, the trustee shall sendamended notice of sale:

(A) By registered or certified mail to:(i) The address provided by each person who was

present at the time and place set for the sale that wasstayed; and

(ii) The address provided by each member of theOregon State Bar who by registered or certified mailrequests the amended notice of sale and includes withthe request the notice of default or an identificationnumber for the trustee’s sale that would assist thetrustee in identifying the property subject to thetrustee’s sale and a self-addressed, stamped envelopemeasuring at least 8.5 by 11 inches in size; or

(B) By posting a true copy or a link to a true copyof the amended notice of sale on the trustee’s Internetwebsite.

(c) The amended notice of sale must:(A) Be given at least 15 days before the amended

date of sale;(B) Set an amended date of sale that may be the

same as the original sale date, or date to which the salewas postponed, provided the requirements of this para-graph and ORS 86.764 and 86.774 are satisfied;

(C) Specify the time and place for sale;(D) Conform to the requirements of ORS 86.771; and(E) State that the original sale proceedings were

stayed and the date the stay terminated.(d) If the publication of the notice of sale was not

completed before the date the foreclosure proceedingswere stayed by order of the court, by proceedings inbankruptcy or for any other lawful reason, after releasefrom the stay, in addition to complying with the pro-visions of paragraphs (b) and (c) of this subsection, thetrustee shall complete the publication by publishing anamended notice of sale that states that the notice hasbeen amended following release from the stay and thatcontains the amended date of sale. The amended noticemust be published in a newspaper of general circulationin each of the counties in which the property is situatedonce a week for four successive weeks, except that therequired number of publications must be reduced by thenumber of publications that were completed before theeffective date of the stay. The last publication must bemade more than 20 days before the date the trusteeconducts the sale.

(e) If a portion of the defaults specified in the ori-ginal notice of default or in the original notice of salewas cured during the time the foreclosure proceedingswere stayed, or if additional defaults have occurredduring that time, the trustee shall describe in theamended notice of sale only those defaults that existedon the date on which the stay was terminated.

(f) After a release from a stay of proceedings, thetrustee or the attorney for the trustee, or an agent thatthe trustee or the attorney designates, may postpone asale for one or more periods that total not more thanthe greater of 60 days or the portion of the 180-day pe-riod allowed for postponement under subsection (2)(a)of this section that remained on the day before the staybegan. A postponement under this paragraph mustcomply with the procedural and notice requirementsspecified in subsection (2) of this section.

86.785 [1959 c.625 §16; renumbered 86.806 in 2013]



86.786 Request for information fromtrustee. (1) Not later than 15 days beforethe date of a sale of property set forth in thenotice of sale under ORS 86.771, the grantor,an occupant, a holder of a junior lien or anyother person interested in bidding at the salemay send a written request to the trusteerequesting that the trustee provide a writtenstatement of information as described in ORS86.789.

(2) The written request under subsection(1) of this section shall be sent to the trusteeat the address given in the notice of sale by:

(a) Certified mail, return receipt re-quested; or

(b) Personal delivery.(3) The written request under subsection

(1) of this section shall include a mailing ad-dress, a facsimile number or an electronicmail address to which the trustee shall sendthe written statement of information.

(4) The trustee is not required to respondto a written request that does not include anaddress, facsimile number or electronic mailaddress described in subsection (3) of thissection.

(5) Upon receiving a written request un-der subsection (1) of this section, the trusteeshall send the written statement of informa-tion to the address, facsimile number orelectronic mail address provided in the writ-ten request at least seven days prior to thedate of the sale. If the person requesting thewritten statement of information provided amailing address, the trustee shall send thewritten statement of information by certifiedmail, return receipt requested and by firstclass mail. [Formerly 86.757]

86.789 Information provided by trus-tee. (1) The written statement of informationprovided by a trustee under ORS 86.786 shallinclude:

(a) A statement of the exact amount re-quired, as of a specified date, to cure the de-fault or satisfy the obligation, including thecosts of foreclosure, trustee fees, attorneyfees and per diem interest; and

(b) A description of any other perform-ance necessary to cure the default or satisfythe obligation.

(2) If the amount required to cure thedefault or satisfy the obligation is not calcu-lable to an exact amount, the trustee mayestimate the maximum amount required tocure the default or satisfy the obligation.

(3) If the trustee does not provide thewritten statement of information within thetime specified in ORS 86.786, the trustee maypostpone the sale of the property to providethe person requesting the written statementof information at least seven days between

receipt of the statement and the date of thesale.

(4) A person requesting a written state-ment of information under ORS 86.786 hasthe rights of an omitted person under ORS86.767 if:

(a) The person requesting the statementproves that the person sent a written requestunder ORS 86.786 at least 15 days before thedate of sale; and

(b) The trustee cannot prove that thetrustee sent the written statement of infor-mation at least seven days before the date ofthe sale.

(5) The provisions of this section andORS 86.786 do not affect the duty of benefi-ciaries to provide information to grantors.[Formerly 86.759]

86.790 [1959 c.625 §3; 1967 c.359 §680; 1975 c.618 §2a;1979 c.879 §5; 1981 c.192 §1; 1983 c.719 §9; 1989 c.190 §7;1997 c.70 §1; 1997 c.631 §388; 2003 c.364 §50; 2013 c.125§2; 2013 c.465 §6; renumbered 86.713 in 2013]

86.794 Disposition of proceeds of sale.The trustee shall apply the proceeds of thetrustee’s sale as follows:

(1) To the expenses of the sale, includingthe compensation of the trustee, and a rea-sonable charge by the attorney.

(2) To the obligation secured by the trustdeed.

(3) To all persons having recorded lienssubsequent to the interest of the trustee inthe trust deed as their interests may appearin the order of their priority.

(4) The surplus, if any, to the grantor ofthe trust deed or to the successor in interestof the grantor entitled to such surplus.[Formerly 86.765]

86.795 [1959 c.625 §19; 1961 c.616 §7; 1965 c.457 §10;renumbered 86.809 in 2013]

86.797 Effect of sale; actions for defi-ciency; restrictions. (1) If, under ORS86.705 to 86.815, a trustee sells property cov-ered by a trust deed, the trustee’s sale fore-closes and terminates the interest in theproperty that belongs to a person to whichnotice of the sale was given under ORS86.764 and 86.774 or to a person that claimsan interest by, through or under the personto which notice was given. A person whoseinterest the trustee’s sale foreclosed and ter-minated may not redeem the property fromthe purchaser at the trustee’s sale. A failureto give notice to a person entitled to noticedoes not affect the validity of the sale as topersons that were notified.

(2) Except in accordance with subsection(4) of this section, after a trustee’s sale underORS 86.705 to 86.815, or after a judicialforeclosure of a residential trust deed, anaction for a deficiency may not be broughtor a judgment entered against the grantor,



the grantor’s successor in interest or anotherperson obligated on:

(a) The note, bond or other obligationsecured by the trust deed for the propertythat was subject to the trustee’s sale or thejudicial foreclosure; or

(b) Any other note, bond or other obli-gation secured by a residential trust deed for,or mortgage on, the property that was sub-ject to the trustee’s sale or the judicial fore-closure when the debt, of which the note,bond or other obligation is evidence:

(A) Was created on the same day as, andused as part of the same purchase or repur-chase transaction as, the note, bond or otherobligation secured by the foreclosed residen-tial trust deed; and

(B) Is owed to or was originated by thebeneficiary or an affiliate of the beneficiaryin the residential trust deed that was subjectto the trustee’s sale or the foreclosure.

(3) Notwithstanding ORS 88.108, in a ju-dicial foreclosure of a trust deed that is nota residential trust deed the judgment mustprovide that if the sale proceeds are insuffi-cient to satisfy the judgment, execution mayissue for the amount by which the unpaidbalance of the obligation secured by the trustdeed exceeds the net sale proceeds payableto 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, secu-rity agreement, consensual or nonconsensualsecurity interest or lien that covers otherreal or personal property that is also used assecurity for the note, bond or other obli-gation that is secured by the trust deed forthe property that was sold.

(b) An action against a guarantor for adeficiency that remains after a judicial fore-closure.

(5) A guarantor of an obligation securedby a residential trust deed may not recovera deficiency from the grantor or a successorin interest of the grantor. [Formerly 86.770]

86.800 Contents of trustee’s deed topurchaser. The trustee’s deed to the pur-chaser at the trustee’s sale shall contain, inaddition to a description of the propertyconveyed, a recital of the facts concerningthe default, the notice given, the conduct ofthe sale and the receipt of the purchasemoney from the purchaser. [Formerly 86.775]

86.803 Recitals in trustee’s deed andcertain affidavits as prima facie or con-clusive evidence. When the trustee’s deedis recorded in the deed records of the countyor counties where the property described inthe deed is situated, the recitals contained inthe deed and in the affidavits required underORS 86.774 (3) and (4) shall be prima facieevidence in any court of the truth of thematters set forth therein, but the recitalsshall be conclusive in favor of a purchaserfor value in good faith relying upon them.[Formerly 86.780]

86.806 Requests for copies of notice ofdefault or notice of sale. At any time sub-sequent to the recordation of a trust deedand prior to a recording of notice of defaultunder the deed, any person desiring a copyof any notice of default or any notice of saleunder a trust deed as provided in ORS 86.764(1) may cause to be filed for record in thecounty clerk’s office of the county or coun-ties in which any part or parcel of the realproperty is situated, a duly acknowledged re-quest for a copy of any notice of sale or de-fault where service is made upon the trustee.The request shall contain the name and ad-dress of the person requesting copies of thenotice or notices and shall identify the trustdeed by stating the names of the parties tothe deed, the date of recordation of the deedand the book and page where the deed is re-corded. The county clerk shall immediatelymake a cross-reference of the request to thetrust deed, either on the margin of the pagewhere the trust deed is recorded or in someother suitable place. No request, statementor notation placed on the record pursuant tothis section shall affect title to the propertyor be deemed notice to any person that anyperson so recording the request has anyright, title, interest in, lien or charge uponthe property referred to in the trust deed.[Formerly 86.785]

86.809 Compensation of trustee. Thecharge of a trustee for the performance ofpowers and duties of foreclosure by adver-tisement and sale imposed under ORS 86.705to 86.815 shall not exceed 50 percent of thecompensation allowable to an executor oradministrator under ORS 116.173 or a mini-mum charge of $100. Such compensationshall be based upon the amount due on theobligation, both principal and interest, at thetime of the trustee’s sale. [Formerly 86.795]

86.812 Impermissible conditions forapproving short sale or sale of note; ex-ceptions. (1) As used in this section, “non-profit entity” means a nonprofit corporationthat is organized in this state and that isexempt from taxation under section 501(c)(3)of the Internal Revenue Code, or a subsidiaryor agent of the nonprofit corporation.



(2) Except as provided in subsection (3)of this section, a beneficiary may not, as acondition of offering or approving a shortsale as an alternative to foreclosing a resi-dential trust deed, require a nonprofit entitythat purchases property that is subject to theresidential trust deed from a grantor in ashort sale, or that purchases a note from thebeneficiary that secures the grantor’s obli-gation to the beneficiary by means of theresidential trust deed, to enter into anagreement with the beneficiary or thegrantor that limits or bars the grantor, afterthe short sale or the sale of the note, fromowning or occupying the property that issubject to the residential trust deed.

(3) Subsection (2) of this section does notapply if:

(a) The beneficiary does not receive no-tice before the short sale that the nonprofitentity or the grantor intends for the grantorto continue after the short sale to own oroccupy the property that is the subject of theshort sale;

(b) The grantor does not allow the bene-ficiary reasonable access to the property that

is the subject of the short sale for the pur-pose of inspecting or appraising the property;

(c) Offering or approving the short salewould require the beneficiary to breach acontractual obligation to another personwith respect to a residential trust deed thatwas recorded before July 19, 2013; or

(d) Offering or approving the short salewould require the beneficiary to breach a le-gal obligation that is not based on a con-tract. [2013 c.625 §2]

86.815 Time within which foreclosuremust be commenced. The foreclosure of atrust deed by advertisement and sale or theforeclosure of a trust deed by judicial proce-dure shall be commenced within the time,including extensions, provided by ORS 88.110and 88.120 for the foreclosure of a mortgageon real property. [Formerly 86.725]

PENALTIES86.990 Penalties. Violation of ORS

86.040 is a Class B misdemeanor. [Amended by1961 c.726 §410; 2011 c.597 §154]
