In June of 2008 the Oregon Legislator passed the “Mortgage Rescue Protection Act.” This bill, Senate Bill 628, requires lenders to meet with borrowers facing foreclosure – either in person or by phone – and evaluate whether they qualify for a loan modification. A loan modification could help borrowers lower their monthly payments and keep their home.
Foreclosure notices that are sent to homeowners who are late on their mortgage payments include new information about how to meet with their lender and how to request a loan modification. If the borrower requests it, lenders must meet with borrowers or show that they evaluated the borrower for a loan modification before foreclosing on the home.
Oregonians who are seriously behind on their mortgage payments should watch their mail for the new foreclosure notice. Once they receive the notice, they should immediately take the following steps:
- Call their lender to set up a meeting to discuss a loan modification.
- Fill out the loan modification request form provided in the notice.
- Call 1-800-SAFENET and ask to be referred to a nonprofit foreclosure counselor. The counselor can help homeowners request a loan modification.
Homeowners should act fast – they have 30 days from the date of the foreclosure notice to request a loan modification.