By Calvin Knickerbocker, Attorney at RCO Legal, P.S., Portland, Oregon

Oregon Senate Bill 381 will become effective on January 1, 2018. The primary change concerns which addresses must be used when sending statutorily required notices: the servicing agent or entity required to send a notice must do so to “all addresses on file, including PO Boxes”.

1. O.R.S. 86.156(3)(b)

a. This section regarding payoff statements was modified to include: “For purposes of this paragraph, a lender delivers an amended payoff statement to the borrower or borrower’s agent if the lender provides the amended payoff statement by electronic means in accordance with ORS chapter 84, sends the amended payoff statement by United States mail postage prepaid and correctly addressed to the borrower or borrower’s agent at all addresses on file with the lender for the borrower or borrower’s agent, including post office boxes, or sends the amended payoff statement by facsimile, provided that the borrower or borrower’s agent receives the amended payoff statement before the borrower disburses funds for the purpose of satisfying the obligation in accordance with subsection (5) of this section.”

2. O.R.S. 86.720(3)(b)

a. This section added a requirement to include PO Boxes in notices regarding reconveyances: “(b) Be sent by first class mail with postage prepaid, addressed to the named interested parties at their last-known addresses, including post office boxes;

3. O.R.S. 86-729(1)(a)

a. The sections adds required addresses for notices initiated required foreclosure mediations: “ Within 10 days after a service provider receives a request for a resolution conference under ORS 86.726, the service provider shall schedule the resolution conference and mail a notice to the beneficiary and to the grantor at all addresses on file with the service provider for the beneficiary and grantor, including post office boxes. The service provider shall schedule the resolution conference to occur within 75 days after the date on which the service provider sends the notice.”

4. O.R.S. 86.748(1)(a)

a. Also involving mediation decisions; the notice requirement was expanded: “…if the beneficiary determines that a grantor of a residential trust deed is not eligible for a foreclosure avoidance measure or that the grantor has not complied with the terms of a foreclosure avoidance measure to which the grantor has agreed, the beneficiary shall mail a written notice to the grantor at all of the addresses for the grantor on file with the beneficiary, including post office boxes, within 10 days after making the determination.”</P

5. O.R.S. 86.756(1) and 86.756(5)

a. This notice change concerns mailing recorded notices of default and if the sender has actual knowledge of an ‘occupant’: “If a notice of default is recorded for property that is subject to a residential trust deed, the sender of a notice of sale under ORS 86.764 shall, on or before the date the notice of sale is served or mailed, give notice under this section to the grantor by both first class and certified mail with return receipt requested to all addresses on file with the sender for the grantor, including post office boxes.”
b. If the sender giving notice under subsection (1) of this section has actual knowledge that the grantor is not the occupant of the residential real property, the sender shall also give notice to the occupant of the property by both first class and certified mail with return receipt requested to all addresses on file with the trustee for the occupant, including post office boxes.</P

6. O.R.S. 86.764(2)

a. Regarding service of notice of defaults: The notice described in subsection (1) of this section must be served or mailed to all addresses on file with the trustee for the following persons or the legal representatives of the persons, including post office boxes
b. If the disability, insanity or death of a person to whom the notice required under this section must be given occurs on or after the notice of default is recorded, the trustee shall, if and when the trustee has knowledge of the disability, insanity or death, promptly give the guardian, the conservator of the estate or the administrator or personal representative the required notice by sending the notice by first class and certified mail with return receipt requested to all addresses on file with the trustee for the guardian, conservator or administrator or personal representative, including post office boxes.”

RCO Legal, P.S. can help you evaluate your current notice processes. Depending on the notice, it may require all addresses on file with the trustee or the beneficiary. We are happy to assist in preparation for this January 1, 2018 requirement. If you have any questions, please feel free to contact RCO Legal at info@rcolegal.com or 425-458-2121.