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How can we stop or delay a foreclosure on a retail building in Oregon? Is there a way to legally get the loan discounted to FMV

Pendleton, OR |

We are facing foreclosure on the first lien originated from the original owner on a building in Oregon. We previously held the second lien and became the owners upon us foreclosing on the original owners. Now we find ourselves with a loan that is $500,000 more than the property is worth.

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Attorney answers 1

Posted

If I understand you right, you bid at foreclosure sale on a second mortgage where you were the mortgagee, but now are facing foreclosure of the senior lien.

Without looking at the documents involved, there's no intuitive reason that the senior lien would need to be reduced. When you bid at the foreclosure sale, the senior lien was known. If you bid too much, that is not the fault of the senior mortgagee.

There may be defenses in the documents and negotiation that can happen with the other mortgagee to work out a modification or alternative to foreclosure. You should seek an attorney with experience in these matters.

Licensed in Oregon. Advice provided is general information only and is based solely upon the facts provided. It is not intended as legal advice applicable to any specific situation. No attorney/client relationship is created unless and until we have met and entered into a written representation agreement. Contact me at 541-250-0542 to discuss your matter further. www.MaugerLaw.com

Asker

Posted

For what it's worth, we didn't buy the second trust deed position at an auction. We lend the money to the owners about 5 years ago.

Robert Lloyd Mauger Jr

Robert Lloyd Mauger Jr

Posted

When you foreclosed the junior lien, presumably it was either through sheriff's sale or advertisement & auction -- unless it was under land sale contract.

Asker

Posted

We had a trust deed sale at the steps in Pendleton Oregon. There were no bidders so we acquired the ownership rights of the property subject to paying off the first lien and the back taxes.

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