Consumption and Real Estate
Can 20% mortgage of 80/20 loan sue for deficiency in Oregon since HB 3656 was passed?
Question : Can 20% mortgage of 80/20 loan sue for deficiency in Oregon since HB 3656 was passed?
I owe $ 198000 on first mortgage and $ 48000 on second. My home is only worth $ 188000 now. If I strategically default and let my home go into foreclosure can the 2nd sue for deficiency. In Oregon they just recently passed bill 3656 which says I cant be sued. Is this true?
oregon mortgage
Best answer:
Answer by acermill
Maybe and maybe not. It appears that HB 3656 is intended to prohibit deficiency litigation ONLY if the 80% loan and the 20% loan were originated at the same time and with funds being provided by the same financial institution. Thus, if both loans originated on the same day and funding for both loans came from Wells-Fargo, you are probably protected. If the 80% came from Wells Fargo and the 20% from Deutsche (as example), then HB 3656 appears to not apply in such a case.
You are advised to seek advice and clarification from a legal professional.
If you are having a difficult time because of the debt on your home, you might want to consider a forensic audit of your loan process.
Lenders have many requirements that they are supposed to follow when making a loan and in the last few years have not fulfilled their requirements.
Nearly all loans that were – ARM’s, Stated Income, Investor, No Doc, had a prepayment penalty, were made to someone speaking a foreign language – were made out of compliance. The audit will show what the lender has done in violation of the lending requirements.
You use their violations to give yourself a position of strength in dealing with them, instead of being under their thumb begging for help.
People can use this information to force a lender to reduce the principal amount, interest rate, the payment, or to complete a short sale.
I can send you an example of the 67 page report you receive after a forensic audit is completed. You will be amazed at the violations that are common in these audits.
If you’d like more information email me at paulevans@centurytel.net
Good luck!