COVID-19 Mortgage Foreclosure Moratorium Extended

COVID-19 Mortgage Foreclosure Moratorium Extended

By Financial Services Industry Group

On August 16, 2021, Governor Kate Brown signed Executive Order 21-30, which extended the mortgage foreclosure moratorium emergency period of House Bill 2009 (2021) to 11:59 p.m. on December 31, 2021.

The Oregon State Legislative Assembly passed HB 2009 during its first regular session in 2021. The law temporarily halted mortgage foreclosures for certain borrowers between December 31, 2020, and June 30, 2021. The law further allowed the foreclosure moratorium to be extended by executive order two times and in three-month increments. Governor Brown previously extended the moratorium until September 30, 2021, by issuing Executive Order 21-14. Now, as new cases of COVID-19 have accelerated through July, the Governor extended the moratorium a second time through the end of the year.

In her executive order, Governor Brown wrote: “I now find that conditions warrant extending House Bill 2009’s moratorium until December 31, 2021. Extending the temporary moratorium another three months will prevent the removal of Oregonians from their homes by foreclosure, which would result in serious health, safety, welfare, and financial consequences, and which would undermine key efforts to prevent the spread of COVID-19. Additionally, the extension of House Bill 2009’s foreclosure moratorium will provide necessary relief to mortgagors that are leasing property to residential tenants, allowing them the needed flexibility to continue to work with tenants who are struggling. These protections are necessary as Oregon continues to deploy federal financial relief, including the Emergency Rental Assistance program and the Homeownership Assistance Fund, both of which are in the initial stages of deployment.”

HB 2009 only applies to certain types of mortgage foreclosures. For example, the mortgage foreclosure moratorium does not protect you against foreclosure if you own more than five residential properties. A residential property is one that contains no more than four dwelling units and is used primarily and designed solely for residential use. Commercial property is also excluded from the moratorium.

Neither HB 2009 nor Executive Order 21-30 affect residential evictions for renters. Currently, renters experiencing financial difficulty can apply for rental assistance at The existing Senate Bill 278 provides a 60-day safe-harbor period from eviction for non-payment of rent, which the safe-harbor period begins on the day that the tenant provides proof to their landlord that they have applied for rental assistance. That safe-harbor period is 90 days for renters in Multnomah County.
The foregoing is a brief summary of Executive Order 21-30. If you have questions about these rules or how they apply to you or your business, please feel free to contact Jared Anderson or another member of the Financial Services Practice Group.