2011 ORS § 86.770¹
Effect of sale
- • actions for deficiency
- • restrictions
(1) If, under ORS 86.705 (Definitions for ORS 86.705 to 86.795) to 86.795 (Compensation of trustee), a trustee sells property covered by a trust deed, the trustees sale forecloses and terminates the interest in the property that belongs to a person to which notice of the sale was given under ORS 86.740 (Notice of sale to be given to certain persons) and 86.750 (Service and publication of notice) or to a person that claims an interest by, through or under the person to which notice was given. A person whose interest the trustees sale foreclosed and terminated may not redeem the property from the purchaser at the trustees sale. A failure to give notice to a person entitled to notice does not affect the validity of the sale as to persons that were notified.
(2) Except in accordance with subsection (4) of this section, after a trustees sale under ORS 86.705 (Definitions for ORS 86.705 to 86.795) to 86.795 (Compensation of trustee), or after a judicial foreclosure of a residential trust deed, an action for a deficiency may not be brought or a judgment entered against the grantor, the grantors successor in interest or another person obligated on:
(a) The note, bond or other obligation secured by the trust deed for the property that was subject to the trustees sale or the judicial foreclosure; or
(b) Any other note, bond or other obligation secured by a residential trust deed for, or mortgage on, the property that was subject to the trustees sale or the judicial foreclosure when the debt, of which the note, bond or other obligation is evidence:
(A) Was created on the same day as, and used as part of the same purchase or repurchase transaction as, the note, bond or other obligation secured by the foreclosed residential trust deed; and
(B) Is owed to or was originated by the beneficiary or an affiliate of the beneficiary in the residential trust deed that was subject to the trustees sale or the foreclosure.
(3) Notwithstanding ORS 88.070 (Sale of real property after mortgage foreclosure), in a judicial foreclosure of a trust deed that is not a residential trust deed the judgment must provide that if the sale proceeds are insufficient to satisfy the judgment, execution may issue for the amount by which the unpaid balance of the obligation secured by the trust deed exceeds the net sale proceeds payable to the beneficiary.
(4) This section does not preclude:
(a) An action that forecloses, judicially or nonjudicially:
(A) Other property covered by the trust deed that is the subject of the foreclosure; or
(B) Another trust deed, mortgage, security agreement, consensual or nonconsensual security interest or lien that covers other real or personal property that is also used as security for the note, bond or other obligation that is secured by the trust deed for the property that was sold.
(b) An action against a guarantor for a deficiency that remains after a judicial foreclosure.
(5) A guarantor of an obligation secured by a residential trust deed may not recover a deficiency from the grantor or a successor in interest of the grantor. [1959 c.625 §§12,13; 1965 c.457 §9; 1981 c.811 §1; 1983 c.719 §8; 1985 c.817 §7; 1989 c.190 §6; 1997 c.786 §1; 2007 c.166 §16; 2009 c.883 §2; 2010 c.48 §1]