Recovery!?! | In Oregon, Foreclosures are Going Behind Closed Doors with No Newspaper Notices

Foreclosures going behind closed doors

So, if you owe the bank $300,000 on a house that sells for $200,000, you still owe the bank $100,000

You might think, in weeks and months to come, that the home foreclosure crisis is over. Actually, it’s just going behind closed doors.

We have a news story in the works, but that will take time and require painstaking compilation of confusing strands in a complex legal web. Meanwhile, in mid-September, most of the home foreclosure notices published in Oregon newspapers will disappear, leaving the impression that our housing crisis has eased.

Not so. In fact, people with serious financial problems now risk losing much more than their houses. Foreclosures will be moved to the courts, where borrowers can be held accountable for the entire deficiency instead of just turning over keys to the front door.

It’s a change from “non-judicial” to “judicial” foreclosure proceedings.

First, without reciting all the legal details, a non-judicial foreclosure is handled by a trustee who holds the deed on behalf of a lender. The process requires newspaper notice of the foreclosure and a property sale at auction. The borrower my lose his or her house and credit rating, but nothing more.

A judicial foreclosure is handled by the courts, ending in a sale conducted by the county sheriff “on the courthouse steps.” Sheriff’s sales of property also have required newspaper notices in the past, but the Oregon Legislature decided instead to hide them on an obscure website.

Rest here…


5 Responses to “Recovery!?! | In Oregon, Foreclosures are Going Behind Closed Doors with No Newspaper Notices”
  1. NS says:

    Judicial foreclosures in the courts are public record. This is not going on “behind closed doors” – we just get to look at the court records for the foreclosures rather than the newspaper. In judicial foreclosures the bank may well have to prove physical possession of the negotiable instrument (mortgage note, if it meets the definition of the Uniform Commercial Code’s Article 3-104…look it up in your own state for your state’s statute version, usually the same text). I’m on the borrowers’ side, absolutely, but judicial foreclosures are a good thing, because now the banks are going to have to prove their right to foreclose according to the Rules of Evidence and Rules of Procedure, and any fraud upon the court has greater consequences against the banks AND their lawyers. Judicial foreclosures are a way of outing what paperwork the banks do and do not have.

    I love your daily updates, but I don’t quite see how this is a bad thing. It means the homeowner/borrower has a chance to defend in court, rather than the sale just happening non-judicially. Hope that makes sense. I don’t work for them, but a $250-ish web tutorial fro has helped me so far to kick one bank’s b*tt so far in the case with them, and that of a debt collector that bought defaulted credit card debt from that same bank. Big bank. Big bank with big Jamie at the top. The web tutorial has helped me, may I be so bold as to suggest that a 5-hour web tutorial education may change things for the better for us homeowners/borrowers if foreclosures go through the courts now.

    Judicial foreclosures may be good news if they can’t prove up their paperwork! I know a few great nimble-minded solo practitioner attorneys willing to be gracious junkyard dogs on these cases, willing to work on them either on a flat fee or contingency % arrangement of any wins to help turn this ship around. One of the good one’s even licensed in Idaho, Washington, Oregon and D.C. and does attorney-to-attorney consulting to work with your local attorney in your local state to help expedite the lawsuit strategy, UCC and MERS chain of assignment issues, and save us on attorney billable time. A good on in NY, a good one in Maine. There are good attorneys out there with the right intentions (watch out for the scammer RICO attorneys doing mass joinders in Florida/CA/etc. though). You’ll find the good ones through word of mouth if you go looking – they are out there and starting to make a name for themselves, and meantime studying up on your own cases through web tutorials and low-cost legal treatise books published by the “National Consumer Law Center” on (several under $10 used; even the old copies will teach you a TON) and will help you get the legal concepts and case law to help give you the confidence to go forward.

    Cheering everyone on here – looking forward to hearing your success stories in court!

  2. stripes says:

    America is a free and open society. Therfore, this tactic is unconstitutional, illegal and even worse, it is outright criminal, abuse of power by severe overreaching. This is complete communism. Just like the Eminent Domain scam, this is being done under COLOR OF LAW. They are trying to enforce fraudulent contracts that never existed to cash notes that they already cashed. Sneak attacks such as these should NEVER be tolerated by WE THE PEOPLE.

    • Jack says:

      Precisely Ivent. Magnolia Pointe, in Barrington is a traditional residence to some of the white colors of truth and freedom. Authority reigned down upon the everpresent threat of unconstitutional rogues, communist types, and the ghetto of the south side where the colored, lazy, poor, addicted, socialist and more often foreclosed, ripped off, unemployed and destitute made their way. In the ol’ days Cook county’s prized and efficient systems of processing social control under the lables of law, truth, constitution – especially before someones life is rightfully slammed down the tube – stands as a symbolic beacon of flag waving, consitutional, rule of law Americanism – ‘I got mine plus it’s totally legal, ’cause we wrote the laws! God Bless America! Lock up the blacks, the poor and the communist agitators!’
      Predator status, ever defended by goons, usurpers and infiltrators in social justice movements who stand ready to rat out the reds. Hugh Heffner printed communist sleaze magazines. Madness!

  3. Sarah says:

    The press, politicians, Banks for years, have lied to convince the public the “crisis” is behind us.
    After the AG blessing bestowed forgiveness on organized crime, the typing monkeys were claiming that the entire crisis didn’t exist, by attempting to re-write history. They are still at it. If the public’s wrath increases against the Banks, which it will anyway, they stand to lose profits.
    Call it class war, a business plan, or tyranny – all descriptions apply.
    So, we have this alarmist piece which is probably meant to scare homeowners more than anything else. As for accuracy, that’s never really important, just a few suitable facts ma’am.

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