Bulletin: OR000007

Date:
December 01, 1989
To:
All Oregon Agents
RE:
Purchase Money Mortgages/Deficiency Judgments

Dear Associates:

The Oregon Supreme Court has ruled that the statute which precludes a purchase money mortgagee from seeking a deficiency judgment after foreclosure does not bar recovery from a guarantor of the underlying debt. Sumner v. Enercon Development Company , 307 Or. 579, 771 P.2d 619 (1989).

ORS 88.070 provides that a purchase money mortgagee "shall not be entitled to a deficiency judgment on account of the mortgage or note or obligation secured by the same". It also defines a deficiency judgment as "a personal judgment against a mortgagor for the mortgage debt remaining unsatisfied out of the proceeds of the sale of the mortgaged property".

The supreme court held that this statute does not protect a guarantor of the underlying debt from a judgment by the mortgagee in the event that the debt is not satisfied by a sale of the property.

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