Due to the extremely rough economy there has been a dramatic increase in short sales and foreclosures. HB 2916 addresses the issue of what happens after a short sale.

Current law allows a lender to write off the loss incurred in a short sale if they choose to do so. However, the lender may amend their taxes and attempt to collect the debt from the borrower up to three years after the date of the short sale.

When this was brought to his attention by a constituent, Rep. Wingard immediately investigated and worked with the affected industries and consumers to provide clarity and protection to all Oregonians navigating this difficult process.

This bill forces the lender to choose between pursuing collections against the borrower, or writing the loss off. Once the decision has been made the lender is locked into their choice, allowing consumers to move forward with their lives knowing they have taken care of all of their debts owed to the bank.

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