Bulletin: OR000003

Date:
May 10, 1989
To:
All Oregon Agents
RE:
Deficiency Judgments

Dear Associates:

The Oregon Supreme Court has confirmed that the beneficiary of a commercial trust deed may seek a deficiency judgment after judicial foreclosure even though the trust deed secured the unpaid balance of the purchase price of the property. FDIC v. Burdell , 766 P.2d 1032 (1988).

ORS 86.770 (3) permits a deficiency judgment after judicial foreclosure of a commercial trust deed. ORS 88.070 prohibits deficiency judgments on purchase money mortgages of $50,000 or less. (The trust deed in question secured a $47,500 purchase of an apartment building.)

The Oregon Supreme Court concluded that a deficiency judgment was allowed.

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:
OR Mortgages
Forms:
None