Eugene-based Gorilla Capital says it’s more difficult for lenders to just foreclose on properties now. Instead, they’re suing to get their money through what’s called a judicial foreclosure.
In October, 17 notices of default were recorded. That’s actually a 90-percent decrease. But 49 judicial foreclosures were filed in Lane County compared to none last year.
“The housing market was healing itself. It was going through a healing process and we were starting to see house prices rise again. Unfortunately, I think this new legislation and the changes to judicial foreclosures is going to put the brakes on the housing recovery,” said John Helmick, Gorilla Capital CEO.
Helmick says judicial foreclosures will likely create a backlog in the courts. That will also slow the economic recovery in Oregon.