During nonjudicial foreclosure process: When can you walk away?

[Levieux]

Getting info for my daughter who has an 80/20 Oregon loan with Countrywide (both loans generated on the same date). B of A has notified her of the foreclosure sale date in November. She needs to know when she can move out without forfeiting her default judgment protection. Does she need to wait until the sale or can she move now since she has received notice of the sale?
I can't seem to find anything definitive about that specific point.
(I know talking to a lawyer is a good idea, but finding a good one is a challenge. We went to a very reputable real estate lawyer in our town who had been here for decades, and while he did explain the basic of the law to us, we had to show him the revised statute about the 80/20 same day/same lender rewording of the law.)

[Jeffrey L. Shurtliff]

Being as you have this revised statute, then in the statute there should be some kind of provision regarding your inquiry. Read the part of default judgnment protection. If you have any further questions post the statute of which you are referring too.

[Levieux]

I agree that it should be there, and it may be, but I sure don't see it. The only two things that might apply (coloring and italics mine):
86.705 Definitions for ORS 86.705 to 86.795. As used in ORS 86.705 to 86.795:
....
(5)“Residential trust deed” means a trust deed on property upon which are situated four or fewer residential units, one of which the grantor, the grantor’s spouse or the grantor’s minor or dependent child occupies as a principal residence at the time a trust deed foreclosure is commenced.

SECTION 3. ORS 88.070 is amended to read: 88.070. { + (1) + } When real property is sold pursuant to a judgment foreclosing a mortgage and the proceeds of the sale are not adequate to satisfy the amounts secured by the mortgage, all judgment remedies for collection of the unsatisfied amounts expire when the sale is made if: .... { + (2) If a purchaser gives more than one mortgage to a seller or a single lender to finance the purchase of real property that the purchaser uses as the purchaser's primary single family residence and the seller or lender or a subsidiary, affiliate or successor of the seller or lender continues to hold the mortgages at the time of foreclosure, judgment remedies for the collection of unsatisfied amounts that the grantor owes to the seller or lender or the subsidiary, affiliate or successor of the seller or lender on notes secured by the mortgages expire when the real property is sold in accordance with the foreclosure. + }

[Jeffrey L. Shurtliff]

With BOA owning both loans and if your investor is Freddie Mac or Fannie Mae, the bank buys the property that is underwater. However the way I read this law you posted is FIRST the person must be occupying at the start of the foreclosure. The start is acceleration, so you should be covered there. SECOND It must be the principle residence of the purchaser and both mortgages are under the same institution and the loan for the principle residence. It must be sold first to escape any defieciency. So stay there until it is sold.

[Levieux]

Thank you Jeffrey. We'll proceed accordingly.