In Oregon, when lenders turned to judicial foreclosures more frequently over the last several years, an owner’s property would be sold at the completion of the foreclosure lawsuit, and the buyer, whether that was the lender or a third-party, would be entitled to possession of the property after the sale. However, the buyer would have to wait six months before officially receiving the executed deed to the property. That six-month period is called a redemption period, which is the time frame in which the prior owner can redeem the property. In order to redeem the property, the prior owner must pay the purchaser the following amounts plus interest:
(1) The price paid for the home at the execution sale;
(2) Any taxes paid;
(3) Any amounts paid to prevent waste;
(4) Any amounts paid to superior liens; and
(5) any assessments paid to an association.
That last item is a new addition as of January 1, 2016. Similarly, the Oregon Planned Community Act and the Oregon Condominium Act have been revised to clarify that the purchaser at the execution sale of real property in a planned community or condominium is solely liable for assessments imposed during the redemption period.
Previously, and although fairly uncommon, lenders or purchasers would assert that the prior owner remained responsible for the assessments that accrued during the redemption period. Fortunately, this new law removes any remaining doubt on the issue, which is beneficial to associations both because of the clarity it offers and the outcome it delivers.