In response to a doubling of the numbers of foreclosures in the state of Oregon, the State House
and Senate passed a law (SB 628), which was signed by Governor Kulongoski in July. The law went into effect today!
This law requires that lenders send a written notice to a home owner prior to filing a foreclosure action (notice of default). The written notice must advise the home owner of the ability to apply for a loan modification, and also allows the home owner to request a meeting with the lender, either in person or via phone.
“Under SB 628, lenders must include with foreclosure notices information about homeowners' rights and a loan modification request form. In addition, the lender must respond to a borrower's request for loan modification and, if requested by the borrower, participate in a meeting.”
While not all home owners will qualify for a modification, this law requires that a lender inform you of your rights and what options are available to you. The intent of the law is to require lenders to communicate with home owners, a feature that has been notably missing during this housing crisis.
In order to ensure that lenders comply with this new law, lenders must file an affidavit describing how they complied, prior to filing a notice of default.
In addition, the statute requires the Oregon Department of Justice to appropriate funds for additional housing counselors to help the home owners deal with the lenders. The funds will come from a legal settlement against a national mortgage company (Countrywide Financial).
For your part, as a home owner, once you have received the notice, you must contact your lender immediately to discuss a loan modification.
You should complete the loan modification request that you receive with your foreclosure notice within 30 days of receipt. AND, your lender must respond to your modification request within 45 days maximum. For Oregonians, the endless waiting for a response has come to an end.
• Call 1-800-SAFENET and ask to be referred to a nonprofit foreclosure counselor. The counselor can help the homeowner request a loan modification.
For more information about foreclosure and the new law, Oregonians should call the Department of Consumer and Business Services at 503-947-7854 or go to www.foreclosurehelp.oregon.gov.
If you'd like to view a copy of the bill, click here.
NOTE: I just tried to go to www. foreclosurehelp.oregon.gov, but it seems it not yet up and functional. I expect that glitch will be dealt with shortly. However, in the meantine, the phone number above could be the lifeline you have been looking for to make contact with your lender accessible now.
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