Oregon Lawmakers Close To Eliminating Loophole Allowing Lenders To Sue Homeowners With Two-Note Mortgages After Home Is Lost To Foreclosure

In Salem, Oregon, The Oregonian reports:

• The Oregon Senate unanimously voted on Wednesday to close the loophole in Oregon law that allows people with two-note mortgages to be sued for money even after they lose their home to foreclosure. House Bill 3004 prevents lenders from suing borrowers who had a 80/20 mortgage or another combined mortgage. These riskier kinds of mortgages are usually offered to people with poor credit ratings or little money to put down.

• The bill will return to the House for a concurring vote. The Senate amended some of the bill's language, but retained its substance, according to co-sponsor Rep. Brian Clem, D-Salem. "I am looking forward to the day this bill is signed into law so families can get relief from these predators," he said. A spokeswoman from Gov. Ted Kulongoski's office said he will sign the bill into law.

Source: Mortgage holder protection bill clears Senate (if link expires, try here).