Oregon Senate votes to reinstate foreclosure moratorium

SALEM, Ore. (AP) — Lawmakers in the Oregon Senate voted in favor of a bill on Monday that would reinstate the state’s moratorium on foreclosures for homeowners dealing with pandemic-related financial hardships.

Under the bill, homeowners could place their mortgage in forbearance at least through the end of June. The moratorium could be extended until the end of the year if Gov. Kate Brown lengthens the statewide emergency period.

The bill passed the Senate 19-9 and now goes to the House.

Lawmakers have pushed the housing crisis to the forefront during the legislative session, and last week sent to the governor a bill that extends the time renters have to pay back rent.

Read more at: https://apnews.com/article/or-state-wire-oregon-coronavirus-pandemic-business-health-e8bd07e22363fd30434f4f72cc94345b

News release from Oregon Senate Democrats:

Oregon Senate Democrats Protect Homeowners

SALEM – Today on a 19-9 vote, the Oregon Senate passed House Bill 2009, a bill to reestablish the residential foreclosure moratorium in order to provide protections for homeowners who have struggled throughout the COVID-19 public health emergency.

During the first Special Session of 2020, Senate Democrats passed House Bill 4204, which placed a moratorium on foreclosing residential and commercial properties until September 30, 2020. Governor Kate Brown extended the moratorium until December 31, 2021. House Bill 2009 reestablishes the moratorium on residential foreclosures through July 1, 2021 and gives the governor the ability to extend the moratorium for 90-day increments through the end of the year in order to be responsive to changing circumstances and available relief.

“In every measure, BIPOC communities have been hardest hit by this health crisis. They’ve experienced disproportionate job loss and a legacy of systemic racism has resulted in a recovery that has been inequitable and has furthered oppression,” said Senator Kayse Jama (D-East Portland) who chairs the Senate Committee on Housing and Development. “In the last foreclosure crisis, BIPOC homeowners were more likely to lose their homes and felt greater housing insecurity, we know that is true today as well. When we keep people in their homes, we contribute to their health, their outcomes and opportunity for their children.”

Following the Special Session in June of 2020, a workgroup convened allowing stakeholders to collaborate and create a policy that would function for lenders and mortgage holders. House Bill 2009 is a product of that collaborative work.

“We have seen a recession before. House Bill 2009 is representative of what we learned from the last recession. So many – through no fault of their own – were not able to keep up with their mortgage during the pandemic,” said Senator Beyer, who carried the bill on the Senate floor. “Not only does this bill provide homeowners with stability to thrive we maintain the value of the properties in their community and avoid a hit to our economy. By taking this step, we all win.”

Senators Beyer and Jama expressed their gratitude to Representatives Julie Fahey and Paul Holvey who brought the bill forward and worked diligently with stakeholders on this important policy.

House Bill 2009 now goes to the House of Representatives for concurrence and then goes to the Governor’s desk for final approval.