Oregon judge voids foreclosure sale, casting doubt on others

A Columbia County judge has blocked U.S. Bank from evicting a Vernonia woman whose home it purchased in foreclosure, concluding in a case with far-reaching implications that her lenders had not properly recorded mortgage documents.

Last week’s action appears to be the first in which an Oregon judge has halted an eviction and declared a foreclosure sale void after the fact. The ruling, if it stands, raises questions about the validity of other recent foreclosures in the state and could create serious problems for lenders and title companies, as well as for buyers of such properties.

“It’s a victory for a lot of people,” said Martha Flynn, 62, who challenged the eviction and whose ability to stay in her home remains in doubt. “I was fighting for the principle of the thing.”

A U.S. Bank spokeswoman said the bank would cease further eviction action and assess its “appropriate next steps.”

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USBank v Flynn Oregon

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