With unemployment still high many Salem Oregon area homeowners are in a dire predicament these days. The letter that comes in the mail stating their home is headed for foreclosure is not happy news. In the 2009 Oregon Legislature, a bill was passed…Senate Bill 628 for the curious. This bill requires lenders to meet with borrowers facing a foreclosure and see whether or not they qualify for a loan modification. It doesn’t guarantee a loan modification because sometimes people just can’t stay in their homes.
When the notice of default comes in the mail, along with it will be information about loan modification. As of yesterday, if the borrow requests a meeting, either in person or on the phone, the lender MUST meet with the borrower OR show that they evaluated the borrower for a loan modification and the buyer didn’t qualify. They need to do this process before foreclosing on a home.
According to the State of Oregon:
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:
1. Call their lender to set up a meeting to discuss a loan modification.
2. Fill out the loan modification request form provided in the notice.
3. 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.
Read that part in bold. If you are a homeowner in trouble this is not a means to stall your foreclosure. You can’t request a loan modification the day before auction. This law is meant to hold lenders more accountable and be responsive to the many homeowners that have requested help with no response in sight.
So, if you are one of the many weary Salem Oregon area home owners that are facing a short sale or foreclosure… call the Department of Consumer and Business Services at 503-947-7854 or call 1-800-SAFENET to be referred to a foreclosure counselor.