On August 31, Oregon Governor Kate Brown issued Executive Order 20-37, extending prohibitions on residential and commercial foreclosures in Oregon through December 31, 2020. This Order was issued under the Governor’s authority given by Oregon statutes and the recent Oregon House Bill 4204, which Governor Brown signed effective June 30.
Notably, this Order is an extension, not an amendment to HB 4204 – the terms of HB 4204 remain the same. As Governor Brown noted in this Order, the goal of these prohibitions remains constant: “[m]aking sure that Oregonians can remain in their homes and that Oregon businesses can continue to provide necessary goods and services.” For more information on HB 4204, Kimberlee Stafford provides concise analysis on its impact and how lenders and borrowers alike can respond.
As the application of HB 4204 and similar legislation protecting tenancies continues, the long-term economic effects remain uncertain. Lenders have already brought lawsuits concerning HB 4204, and the strain on lenders will only increase with the passage of time.
As a final note, so far the moratoria on foreclosures and tenant evictions have been extended to the same expiration dates, so don’t be surprised if a new order on tenant evictions releases soon. For this and other up-to-date information on the various legal impact of the coronavirus, please visit Tonkon’s COVID-19 Business Resources page.