Third Oregon Housing Bill Passed this Weekend Confirms Elimination of "80/20" Second Liens in Foreclosure.

HB 3656A passed the Oregon Senate Saturday Feb 20th, and is now on its way to the Governor for signature.

As explained in the House Measure Summary HERE:

When a home buyer does not qualify for a single loan to cover the purchase price of a home, there is an alternative way to structure financing called an “80/20” loan, where the purchase price is secured by two trust deeds. Recent court cases have permitted the junior creditor to sue for remaining deficiencies after the property has been sold at foreclosure.
House Bill 3656-A stipulates that in cases where a second loan was created as part of the same purchase or repurchase transaction as the one on which the foreclosure action was taken, and when it was owed to or originated by the beneficiary of the foreclosure or its affiliate, the holder of the second loan cannot sue for restitution.

INVITATION: If anyone knows of other housing related legislation that has passed BOTH the Oregon House and Senate in this Special Session, PLEASE add the bill number in a comment on this post.

Originally created and posted on the Oregon Housing Blog.