Short Sales in Oregon - New Law to Pay Attention to

By
Mortgage and Lending with Advantage Mortgage

Everyone seems to know what a short sale is these days, but few know about some important changes in Oregon law with respect to Short Sale Negotiation.  Oregon's House Bill 2191, which became law in 2010, says the following:

Residential Short Sale Negotiation is a regulated Debt Management Service (OAR Chapter 411, Division 900, 0000-0200)

Under the new law, licensed Real Estate Agents may perform Short Sale Negotiation as a part of their service to their clients as long as nothing more than a customary real estate commission is  earned (meaning the Short Sale Negotiation is done for free)

A fee can be charged for third party Short Sale Negotiation only if the negotiator is appropriately registered with the Division of Finance and Corporate Securities (DFCS) - a few exemptions are available to banks,
licensed loan originators and attorneys

Many Short Sale Negotiation companies and individuals operating in Oregon are currently missing from the registry and therefore need to jump through some hoops to meet Oregon's new requirements before they can legally accept a fee for their services

For more information go to http://www.cbs.state.or.us/dfcs/debt_mgmt.html

Comments (7)

Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Thank you for the update, Oregon has very progressive Real Estate laws.

Jun 17, 2010 05:25 PM
Ralph Gorgoglione
Maui Life Homes / Metro Life Homes - Kihei, HI
Hawaii and California Real Estate (310) 497-9407

Very interesting.

I wonder if they will follow suit in California.

Jun 17, 2010 05:30 PM
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Thanks for sharing your local laws with us. Very important to know as agents.

Jun 17, 2010 05:48 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I like the idea and it is worth the effort to do short sales.

Jun 17, 2010 06:22 PM
Brian L. Nelson
AllTrade Home Inspection - Lake Tapps, WA
Seattle WA - Tacoma WA Home Inspector

Interesting Post! Good information, thank you for sharing.

Jun 17, 2010 07:26 PM
Anonymous
Nancy

I believe the new law has restrictions about the fees that may be charged as well.

Jun 17, 2010 07:59 PM
#6
Mark Aalto
Advantage Mortgage - Portland, OR
NMLS: 116708

My pleasure.  It's going to be interesting to see how all of this plays out.  There appear to be quite a few

Jun 18, 2010 08:18 AM