Sunday, August 28, 2011

Nonjudicial state Oregon foreclosures appear likely to shift to the courts


For half a century, the vast majority of the state's residential foreclosures have occurred without a judge's involvement. Oregon is one of 24 states that allow nonjudicial foreclosures, provided lenders give borrowers proper notice, publicize the sale and abide by other requirements.

But late last year, federal judges began blocking them, ruling that lenders had failed to follow one of those requirements: filing the mortgage's ownership history in county records.

No one can say how many of the estimated 26,000 foreclosures pending in Oregon will ultimately land in front of a judge. But attorneys and trustees involved in both processes say hundreds of files are being reviewed.

"It could be thousands, ultimately," said Lance Olsen, attorney with Routh Crabtree Olsen in Bellevue, Wash., whose affiliate, Northwest Trustee Services Inc., is the largest nonjudicial service provider in the West.

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