Morris v. Northwest Trustee Services, Inc., 691 F. App'x 316

Lee and Dorothy Morris defaulted on a home loan secured by a deed of trust; a nonjudicial trustee’s foreclosure sale occurred on January 11, 2012.
Plaintiffs sued after the sale, challenging the sale’s validity under the Oregon Trust Deed Act (OTDA).
District court granted summary judgment for Northwest Trustee Services, Inc. and JPMorgan Chase Bank, N.A., concluding ORS 86.797(1) bars post-sale challenges when notice was given.
After that decision, this Circuit clarified that post-sale challenges are not barred when based on lack of notice or other fundamental flaws (e.g., sale without actual default).
Oregon Court of Appeals decisions held that absence of a proper “trustee” participation is a fundamental defect that permits a post-sale challenge under the OTDA.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether ORS 86.797(1) bars post-sale challenges when notice was given	Morris: sale invalid under OTDA despite notice; may challenge post-sale for fundamental defects	Defendants: section forecloses post-sale challenges where notice was given	Vacated and remanded for reconsideration in light of controlling authority; post-sale challenges may proceed if alleging fundamental defects such as lack of trustee or notice failures

Woods v. U.S. Bank N.A., 831 F.3d 1159 (9th Cir. 2016) (post-sale challenges allowed when based on lack of notice or other fundamental foreclosure defects)
Wolf v. GMAC Mortg., LLC, 370 P.3d 1254 (Or. Ct. App. 2016) (trustee participation is fundamental to a trustee’s sale; absence permits post-sale challenge)
Bank of Am. v. Payne, 379 P.3d 816 (Or. Ct. App. 2016) (adopts Wolf’s rule regarding trustee participation as fundamental)
DiGregorio v. Bayview Loan Servicing, LLC, 381 P.3d 961 (Or. Ct. App. 2016) (OTDA does not require strict compliance with every provision, but reaffirms trustee participation as a fundamental requirement)