Oregon Foreclosure Prevention

For 2009, Oregon ranked 11th among all states in foreclosure rate, an increase of 89.55% from the year before. Nationally, 2009 was the worse year for foreclosures in US history, with 2.8 million property owners receiving a foreclosure notice.

Foreclosures in Oregon can be either a judicial or non-judicial process. The mortgage is secured by a deed of trust in which the trustee holds temporary title until a mortgage is paid off.

In 2008 Oregon foreclosure laws were changed as follows:

• Trustees controlling foreclosure sales must notify homeowners of pending home loss danger at the same time or before the required foreclosure notice. Trustees must provide contact information for government assistance and a direct number to servicers so that those in default can attempt a loan modification on their own.
• Any foreclosure rescue contracts for consultants must be written in clear language including a full description of services provided with total costs. Consultants are prohibited from receiving any interest in homes that are in foreclosure. Consumers now have 24 hours to cancel such a contract.
• Mortgage originators were placed under the authority of the Oregon Department of Consumer and Business Services. The law now authorizes DCBS to identify and police originators allowing the department to revoke the registration of those who repeatedly flaunt consumer protection laws.

The Oregon Division of Finance and Corporate Securities (DFCS) offers this advice:

• Contact your lender’s loss mitigation department as soon as you anticipate not being able to make your mortgage payments. If you choose to negotiate with your lender yourself, keep records of all correspondence.
• If you don’t feel comfortable dealing with your servicer directly, contact a non-profit counselor. Here’s a list of government-approved counseling agencies or call Oregon SafeNet toll-free at 800-SAFENET (800-723-3638). Another option is the National Foreclosure Hotline Web site 888-995-HOPE (888-995-4673).
• If you decide to retain an attorney, verify that he or she is an active member of the Oregon State Bar Association. You can check on line or call 800-452-7636. If you can’t afford an attorney, you might be able to get assistance through Legal Aid Services of Oregon.
• If you hire a foreclosure prevention firm, be aware of potential scams. Check with the Corporation Division of the Oregon Secretary of State to see if the company is authorized to do business in Oregon or call 503-986-2200. You can also visit the office at the Public Service Building, Suite 151, 255 Capitol St. NE, Salem, OR 97310. Be sure you have the exact name spelled correctly.

The Department warns consumers of the following potential signs of fraud:

• High pressure to sign paperwork before reading it.
• Foreclosure prevention guaranteed, no matter what the specifics.
• Implication but not a statement of fact that the entity is a law firm.
• Full payment of fee collected in advance.
• Required access to your bank accounts.
• Prohibition of contact with your lender or a non-profit counselor.
• Instructions that you should stop paying your lender.

Many of the service provided for a fee can be found for free from this list of US Housing and Urban Development, HUD approved agencies in Oregon.

If you are unable to reach your servicer or local state program, or if you would like additional assistance in this process contact Mortgage Outreach at 1-866-408-0420. Mortgage Outreach works directly with many servicers to help find solutions for borrowers that are struggling to keep up with their payments.