Follow Up to Senate Bill 558A: Changes to Oregon’s Foreclosure Laws

On Tuesday June 4, 2013 Governor Kitzhaber signed into law an expansion of the foreclosure avoidance mediation legislation first approved by the Oregon legislature last year. The law was expanded after the legislation failed to affect the foreclosure process in 2012 because many lenders and loan servicers pursued judicial foreclosure instead of non-judicial foreclosure to enforce defaults under residential trust deeds. The legislation as initially drafted, only required mediation as a pre-condition to non-judicial foreclosure actions. With his signing of Senate Bill 558A, Governor Kitzhaber has expanded the law to require mediation for most lenders and loan servicers whether they foreclose upon a residential trust deed judicially or non-judicially. In addition, Senate Bill 558A narrows the ability of smaller lenders and servicers to be exempt from the mediation requirement if they conduct less than 175 residential trust deed foreclosures annually, down from the prior threshold of 250 such foreclosures. A copy of Senate Bill 558A as signed can be found at and becomes operative on Monday August 5, 2013.