During the Emergency Period, which is defined as March 8, 2020, to December 31, 2020, unless further extended by the Governor, HB 4204 prevents certain lenders with loans secured by liens on commercial and residential real property or loans secured by personal property if that property is used as a residence in the State of Oregon from declaring a borrower in default for failing to make a regular payment (or paying any other amount due to the lender under the loan) if the borrower notifies the lender that the borrower will not be able to make the payment and attests that it is because of a loss of income due to the COVID-19 pandemic. If properly notified, the lender must (1) defer from collecting the payment, and (2) permit the borrower to pay the missed payment on the loans maturity.
A borrower need not provide notice to the lender more than once during the Emergency Period, and the lender cannot charge any late fees, attorney fees, or default interest as a result of the deferred payments. HB 4204 does not relieve a borrower of the obligation to pay the full amount of the loan; it only defers payments during the Emergency Period. To take advantage of the payment deferral, you must notify the lender in writing or verbally that the payment or payments cannot be made because of a loss of income due to the COVID-19 pandemic.
A deferred account means the lender has agreed that you can delay payment for a certain amount of time. If the payments are deferred, your credit report may show that the loan is in forbearance or in a deferred payment plan. This information may be used in calculating your credit score.
HB 4204 also prohibits all foreclosures during the Emergency Period. HB 4204 does not apply to any judgments of foreclosure and sale, writs of execution, or notices of a trustees sale that were issued before the Emergency Period began. For all foreclosures that were pending on March 8, 2020, HB 4204 freezes the proceedings until the end of the Emergency Period, and tolls all applicable statutes of limitation. Foreclosures that were pending on March 8, 2020, can resume on January 1, 2021, unless the Governor extends the Emergency Period.
The accommodations provided under HB 4204 end 90 days after the expiration of the Emergency Period.