Ore. law gives homeowners more leverage against foreclosure
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SALEM, Ore. – A new law in Oregon that took effect on Wednesday will give homeowners new tools to help them prevent foreclosure on their homes.
Senate Bill 1552 (PDF), which took effect July 11, gives homeowners threatened with foreclosure the right to meet with their mortgage servicer face-to-face in mediation before final foreclosure decisions are made.
“This important piece of legislation will hold loan servicers accountable and ensure that Oregonians have every opportunity to stay in their homes,” said Oregon Senate majority leader Diane Rosenbaum said in a press release from the Oregon Department of Housing and Justice.
Rosenbaum called the law one of the “key accomplishments” of the 2012 legislative session for Oregon lawmakers.
The law states that homeowners who receive a notice of default will receive information on free foreclosure counseling and low-cost mediation services. Mediation services will be provided to homeowners at a subsidized rate of no more than $200.
The state says funding for the program comes from mortgage servicers and from funds set aside by the legislature from a national settlement with five large banks.
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During mediation, the law gives homeowners the ability to explore alternatives to foreclosure including loan modifications, refinancing, short sales and other options.
“By sitting down with their servicer, and a neutral mediator we’re ensuring homeowners will be well informed, and that they will be heard by banks,” said State Representative Betty Komp. “We’ve passed a landmark bill that will give Oregon homeowners an important tool to help them remain in their homes. I’m excited that today middle class families and at-risk seniors can begin accessing this program.”
The Department of Justice convened a 15-member work group to implement the program across the state and develop program rules. The Department of Justice also contracted with a mediation service provider, Collins Center for Public Policy to manage the mediation program.
Homeowners who want to participate in the mediation program should go to http://www.foreclosuremediationor.org/ or call 855-658-6733.
Homeowners can find a HUD Certified counselor and learn more about foreclosure prevention by visiting www.foreclosurehelp.oregon.gov or calling 1-800-723-3638.
Folks Please educate yourself on the sub-prime loans that put "Most" of these homeowners into forclosure. I put 30,000 down on a lot, then obtained a contruction loan then rolled into a conventional 30 yr loan in 1994. I ended up in a divorce/custody suite, it went on for some yrs., yes, years. I finally prevailed in 2007. I had taken a loan out to pay for attoney fees. I have taken out many mortgage loans in my yrs., homes, rentals, etc. I did not know to EVEN look out for such loans "SUB-PRIME loans. I thought they were just like any other mortgage loan I had aquired over the yrs.  Then approx. 2 yrs after- I received my usual payment in the mail only to see my montly mortgage payment went from 1,200 to over 1,800 a month. THIS IS WHAT HAPPENED to all of us so called "Losers" that have been labeled as getting into a mortgage that WE can't afford. We were tricked. I would have NEVER taken out such a loan had it been explained to me as such, NO-ONE would have. We just want the Banks to step up give us a decient break out of these nightmarish SUB-PRIME LOANS. (Just like OBAMA gave them a hand up) I did not obtain a loan I could not afford. I was not told the loan I obtained was going to go up in two yrs to a sum I could not afford. Please do not post comments until you educate your self into what a sub-prime loan really is. They took all of these loans rolled them all up and sold them into bonds that some cities, countries etc. bought and that is how Cities and Countries are also introuble finacially. This is just a condensed version of what sub-prime loans are, much too complicated to write it all down here, so please do all of us a favor and read up on what these sub-prime loans were, and I use this in past tense because of course these loans are NO LONGER AVAILABLE,
Ok I get it. Since you can't read and understand loan terms the rest of us should suffer. Thanks.
@2012 Hope and Change Well it is what the mitt boys are good at just like used car salesmen....
@ORView .........sounds to me that at the time of loan origination that you should have educated yourself to the variable rate structure of the note. If there was a faulty disclosure,..........you have a lawsuit that you could likely win.
What if the bank does not have the note?
A stall tactic used by borrowers to merely delay the inevitable.
I hope everyone is satisfied now and they can get on with the foreclosures.Â
If you don't pay your mortgage as agreed, you are in default. The bank has the right to foreclose.
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I hope that the response is, companies stop writing loans in Oregon. Then the state can think about who they can bleed dry next...
 @Owt_Raged But if the Bank does not have "The Note" then what?
So, let me see if I have this right : the Oregon legislature and the Dept of Justice can alter the terms a pre-existing contract? Wow ! I guess a persons promise to pay certainly doesn't mean what it used to.
 @Rob C Yea, there's also this thing called bankruptcy court that can do the same thing. Wow. Right now American Airlines is using it to dump all of it retirees (despite the pre-existing contracts and all).
@Max Quinn I understand that contracts can be voided and rejected in a chapter filing, but this is outside of that remedy.
 @Max Quinn It IS modifying existing contracts by forcing an extra step before foreclosure can proceed. The modification is the addition of this extra step and associated delays following it...
@Max Quinn @Max ........I guess we're not following each other. All of this process is done outside of a bankruptcy filing is my understanding. That's what I would object to
 @Rob C  @Max No it isn't. From the program's web site: "All the mediator can do is help the parties look at the dispute more objectively, discuss options for a workout of the mortgage, listen to each side privately, and help the participants find a solution. A mediator makes no decision, judgment or recommendation on the outcome of the mortgage dispute." Any party can walk away from this. Wow.
Is Diane Rosenbaum going to be responsible when somebody not paying their bills blows away a banker during "mediation"?
 @2012 Hope and Change What's the problem with that?
 @molotovmouse Oh sure, borrow money from a bank, don't pay them, then blame them for calling the note? No one forces people to borrow money to buy a house. It IS possible to save money and pay cash. Banks loan money to people to make money. Don't like them? Then don't use them...
 @Shawn Alley How many people do you know personally that have paid cash (in full) for their homes?
"Mediation services will be provided to homeowners at a subsidized rate of no more than $200"
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My guess is that the companies that will be doing the mediation services (usually companies run by lawyers, who are able to get lawyer rates for their non-lawyer employees) lobbied to get this pushed through.
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BTW, one way to avoid foreclosure is to pay your mortgage, and don't buy a house you can't afford.
 @Speedster Yup all those millions of people nationwide who bought a house they could afford then, through no fault of their own, lost their jobs or had to take a severe reduction in work during the massive ressession should have never bought those homes in the first place due to the remote possibility at the time that they could lose their employment.
Just another law that means nothing. Politicians will puff their chests out and crow about protecting us commoners but really it will just be another hurdle the banks will have to go over before they foreclose on a home.