Bulletin: OR000008

Date:
January 26, 1990
To:
All Oregon Agents
RE:
Suit on Promissory Note

Dear Associates:

The Oregon Court of Appeals has ruled that the trust deed antideficiency judgment statute, ORS 86.770 (2), does not preclude an action on the note only. The statute prevents a suit for the debt only after a trustee's sale or a judicial foreclosure. Beckhuson v. Frank 97 Or. App. 347, 775 P. 2d 923 (1989).

A trust deed beneficiary may elect to sue on the note and waive his security, or he may foreclose on the security and waive his right to collect a deficiency.

In a related case the court of appeals held that the filing of a Notice of Default did not constitute an irrevocable election to pursue foreclosure and that the beneficiary of the trust deed could discontinue foreclosure and sue on the promissory note. Barclaysamerican v. Boone, 96 Or. App. 635 773 P.2d 1338 (1989).

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
12.32 Mortgage Foreclosures
Exceptions Manual:
None
Forms:
None