Housing Changed regulations benefit homeowners, require meetings with lenders before foreclosure
In the six weeks since the redesigned Oregon Foreclosure Avoidance Program was unveiled, more than 450 lender meetings have been requested.
Last spring, Senate Bill 558 was passed which made judicial and non-judicial foreclosures subject to the meeting requirement. In the past, only non-judicial foreclosures required face-to-face meetings.
No ones happy about impending foreclosures, but were delighted with these numbers because, unlike the earlier program, it means this one is working the way its supposed to, said Attorney General Ellen Rosenblum. We worked hard to close the loophole that allowed banks to avoid face-to-face meetings with borrowers. We remain hopeful that getting lenders and borrowers together at the same table will help prevent foreclosures and keep Oregonians in their homes.
Once a lender with intent to foreclose requests a meeting with the homeowner, the owner has 25 days to respond. They must pay a fee of either $50 or $200, depending on their income, and provide financial information to the lender. The lender needs to provide payment history and copies of the loan documents to the owner before proceeding.
Its important that people interested in meeting with their lenders be proactive and respond in a timely manner, Rosenblum said.
Although the housing market is steadily improving, 4.85 percent of homeowners in Oregon are 90 days or more delinquent on their mortgages.
For more information about the OFAP, visit bit.ly/13fxhqI or call 1-855-412-8828.