Oregon Foreclosure Details.pdf

7/28/2019 Oregon Foreclosure Details.pdf

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Steps you can take toprotect your home and

your credit

Division of Finance andCorporate Securities


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Oregon Division of Finance andCorporate Securities

Our mission

To encourage a wide range of financial services,products, and information for Oregonians,

delivered in a safe, sound, equitable,and fraud-free manner.

The information contained in this guide isintended for informational purposes only and doesnot constitute legal or professional advice. Seekthe services of an attorney for yourparticular circumstances.

This agency does not endorse or recommenda particular counselor or mortgage lender. Werecommend you contact the agencies listed in theresource section at the end of this guide to verifywhether companies and organizations are licensedor registered.

Terms used in this guide in bold italicsare in theGlossary on Page 20.


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Oregon Department of Consumer and Business Services

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*A step-by-step guide to apply for aloan modification can be found at

www.foreclosurehelp.oregon.gov.

Contents

You can avoid foreclosure ................................. 2

Review your loan documents ............................ 2

Create a budget ...................................................3

Make sure you are paying yourproperty taxes .....................................................3

Avoid unnecessary liens on your house ............ 4

What you can do if you face foreclosure ...........5

Forbearance or repayment plan ...................... 6

Mortgage loan modification............................ 6

Partial claim..................................................... 6

Pre-foreclosure or short sale ............................. 6

Deed-in-lieu of foreclosure................................7

Fannie Mae and Freddie Mac rental programs...7

Foreclosure: What and when it happens .......... 8

A word about the mediation process.............. 10

Potential tax consequences .............................12Making Home Affordable Program .................13

Other options .....................................................13

Beware of foreclosure scams ........................... 14

Resources ............................................................16Oregon foreclosure laws and bills...................20

Glossary ............................................................. 20

Dos and Donts ................................................. 25
http://www.foreclosurehelp.oregon.gov/http://www.foreclosurehelp.oregon.gov/


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Foreclosure: You can avoid it

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You can avoid foreclosureBecoming a homeowner is a great accomplishment,but retaining that homeownership is just as impor-tant. Most everyone experiences financial difficul-ties at some time, but if youre not careful, thosedifficulties could lead to foreclosure. Foreclosure

is the legal means your lender can use to take yourhouse if you are in default. Foreclosures can beinitiated by anyone who has a lien on your house,including your lender or the county (if you dontpay your property taxes).

Foreclosure not only means losing your home, it

can cause damage to your credit, making it dif-ficult to buy a home or obtain other types of loansin the near future.

However, you can avoid foreclosure. There aremany things you can do after you sign your mort-gage papers and move into your new home thatwill help if you experience financial difficultiesdown the road. Here are some suggestions:

Review your loan documentsAfter you move into your new house, review your

loan documents as soon as possible to make sureyou know how your payments are credited andwhat rights or obligations you have if you startmissing mortgage payments.

For example, your Truth-in-Lendingdisclosureand yourNote contain information about when

your payments are due and how to ensure yourpayments are posted on time. If your loan is goingto be transferred or sold to another company,which is a common practice, the lender or theservicerof your loan must notify you in writ-ing of these changes so you know when and to

whom you should send your payments. You werenotified of the possibility for your loan to changehands in the Servicing Disclosure provided whenyou applied for your mortgage loan.

If you have problems with your payments beingcredited properly and cannot resolve them withthe servicerof your loan, contact the NationalServicing Center if you have a loan insured by theFederal Housing Administration (FHA). For other


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types of loans, send a separate letter to the servicerof your loan a Qualified Written Requestunderthe Real Estate Settlement Procedures Act (RESPA).See the resources section of this brochure for thewebsites containing this information.

Create a budgetYou probably have heard the expression toomuch month at the end of the money. If this hap-pens to you, you could miss mortgage paymentsand face foreclosure. Its important to carefullyre-evaluate your financial situation and create

a budget. Find out where your money goes andhow you are spending it. Encourage the wholefamily to participate as you make the neces-sary cuts in your spending habits and prioritizeyour expenses. As soon as you can, create anemergency fund that would cover your living

expenses for a foreseeable future. Remember,even if you have a fixed interest rate loan, yourproperty taxes and your homeowners insuranceare likely to have adjustments every year and youshould carefully budget for these. Some peopleuse their income tax returns to open an account

specifically for emergencies. If you are beginningto lose control over your finances, seek the help ofa reputable nonprofit organization. The resourcessection includes a website link where you willfind a listing of government-approved nonprofithousing counseling organizations in differentareas of the state.

Make sure you are paying yourproperty taxesIf you do not pay your property taxes, your

house may be subject to foreclosure.In Oregon, property taxes are due Nov. 15 of eachyear, but they can be paid in three installments:Nov. 15, Feb. 15, and May 15. Your property taxesare delinquent if you do not pay in full by May 15.Your property likely will be subject to foreclosureafter three years of unpaid property taxes. Afteryou miss your first year of unpaid taxes, you will


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be notified in your tax statements when yourhouse will be subject to foreclosure.

You need to know if your mortgage paymentsinclude your property taxes and homeownersinsurance. If required, lenders will deposit a por-tion of your monthly payments into an escrow

accountto pay for your property taxes andhomeowners insurance. You can also contactthe county where your house is located to findout how to tell on your property tax statementwhether you are responsible for paying yourproperty taxes.

If you are disabled or a senior citizen, you mayqualify for a property tax deferral. Qualificationsfor this program include a calculation of yourannual household income, whether you live inthe property, and the value of your home, which

is based on the county where your house islocated. If you qualify for this loan and decidethis program works for you, the state will pay thecounty for your property taxes. It is an interest-bearing loan that does not have to be paid backuntil you no longer live in the house.

For information about this process, additionalrequirements, and property tax information,contact the Department of Revenue or the countywhere your property is located. Contact informa-tion is in the resources section.

Avoid unnecessary liens on your houseYou are responsible for all liens on your house.There cannot be any liens when you sell yourhouse. Remember, a lien holder may start the fore-closure process on your property.

Voluntary and involuntary liens can be placed onyour property. An example of a voluntary lien isyour mortgage loan or any junior liens, such asequity loans or equity lines of credit, when you useyour house as collateral. Usually, the lien recorded

first would have priority to be paid over subse-quent liens.


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An example of an involuntary lien would be oneplaced by the county where your house is locatedor the IRS if you have unpaid taxes. Contractorsand subcontractors also can place a lien, commonlyknown as a mechanics lien, on your house if theyhave not been paid for work they did on your

property. While contractors must give you a dis-closure Notice of Right to a Lien, it is importantthat you try to resolve any discrepancies with thecontractor to avoid a lien on your house.

Another example of an involuntary lien is a judg-ment against a property as a result of a lawsuit

where money is awarded to the person who filedthe lawsuit.

What you can do if you faceforeclosure

If you do get behind on your mortgage payments,you may be able to keep your home and reducethe effect on your credit rating if you confront theproblem early. The most common mistake peoplemake when they get behind on their mortgage pay-ments is to ignore the problem or delay an action

until its too late. Some people dont even open theforeclosure warnings their lender mails them.

If your goal is to save your house and your creditrating, immediatelycontact your lender and try tonegotiate a solution. Explain your willingness tocommit to a payment plan until you are in a better

position to resume your regular payments.If you foresee temporary problems for reasonsbeyond your control, such as the loss of a job, medi-cal emergency, or divorce, ask to speak with a staffperson about a loss mitigation plan. Prepare a letter

explaining your situation, the reason you are facingfinancial problems, and why you think it couldimprove.

If your lender allows for partial payments duringthis time, do so and maintain the records; thismay help your chances of reaching a permanent

agreement with your lender. Most lenders havevarious options before pursuing foreclosure. Inmost cases, these options have been established


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with the investors who are the owners of your loan.Following are examples of those options:

Forbearance or repayment plan

Ask your lender if you can reduce or suspendyour monthly payments for a short period of time.This option may be available if, for example, you

are expecting funds that would help bring yourloan current or if there is a firm possibility yourincome will increase and your financial situationwill improve. You will be asked to document thesepossibilities.

Mortgage loan modificationWith this option, you could request the lenderchange some of the original terms of the loan.This may include the extension of the paymentsfor a longer period of time, or the interest can bechanged to a lower rate or converted into a fixed

rate to make your mortgage payments lower ormore stable. If approved, carefully review the docu-ments before you sign them, so you understand theconditions. You may want to have an attorney orhousing counselor review them with you to makesure you understand what they contain.

Be sure to find out if you qualify for a loanmodification under the Making Home AffordableProgram. For information about this program,see Page 13.

Partial claim

If you are paying mortgage insurance, the insurerof your loan may consider helping by lending youmoney to pay for the late payments and late fees.Contact your lender or insurer to ask if you qualify,and how the assistance is to be repaid. FHA andVA loans have their own guidelines for assistanceunder this option.

Pre-foreclosure or short sale

If you owe more than what your house is worth,the lender may allow you to sell the house andaccept a lower amount than what you owe, before

the house is foreclosed upon. Ask the lender ifthere will be a deficiency judgment the amount


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uncovered after the sale of the house filed againstyou for the difference. Ask for a written agreementclarifying the status of a deficiency, if any.

A word of caution about companies or individu-als offering short-sales services Oregon lawrequires that an individual or company offering

you assistance for this and other possible solutionsto avoid foreclosure must be registered as a debtmanagement services provider or as a licensedloan originator. While licensed real estate brokersare exempted to help homeowners with short saletransactions, Oregon law imposes some restric-

tions about fees or commissions when listing thehouse for sale. Others offering to negotiate withlenders about possible solutions are limited in howmuch they can charge and other requirements theymust meet. The Division of Finance and CorporateSecurities has a publication Need help with your

debt? with more detailed information. Contact thisagency to request a copy or visit its website listed inthe resources section.

Deed-in-lieu of foreclosure

If you have unsuccessfully exhausted all the above

options, you may be able to give back your houseto the lender by surrendering the title of your houseand avoid foreclosure.

Also, some servicers may offer you money tomove out of the house, commonly known as

cash-for-keys.

Usually, the lender will expect you to leave thehouse in good condition. If you choose to acceptthis money, ask for a document about any presentor future conditions for accepting the money.

Important: A loan modification or any of the other

solutions above may also have a negative effect onyour credit score.

Fannie Mae and Freddie Mac rental programs

These agencies have rental programs available forhomeowners whose loans are owned or insured

by either agency and were not able to keep theirhouses as a result of foreclosure. Under certainconditions, these options would allow homeowners


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to remain in the house for an agreed upon period oftime. For more information about these programs,visit the links in the resources section of this guide.

Foreclosure: What and when it happensThere are two types of foreclosure processes inOregon that lenders can use when a mortgage loanis in default judicial and nonjudicial.

In ajudicial foreclosure, the lender or a represen-tative acting on its behalf takes you to court torecover the money you owe by selling the houseused to guarantee the repayment of the loan. In

a real estate judicial foreclosure, there are somerestrictions about the amount of money you canbe sued for. If you receive aNotice of Hearingor anotice to appear in court regarding the sale of yourproperty, immediately contact an attorney. Thereis contact information for the Lawyer Referral

Services from the Oregon State Bar Associationin this brochures resources section. Before youreceive this Notice of Hearing, your lender maysend you a notification informing you of its inten-tion to start the foreclosure process. Remember,once you are in defaulton your loan agreement,

the lender can start the foreclosure process at anytime.

The judicial process starts when the lender orits representative requests the circuit courtauthorize the sheriff to conduct the sale of thehouse. To allow the sale, the court must first give

the homeowner the opportunity to be presentat the hearing. After the request to the court, thehomeowner will be served with a new notifica-tion at least 10 days before the hearing with a

NOTICE OF HEARING ON SHERIFFS SALEOF YOUR PROPERTY. The notice, or summons,

will also be sent by first class mail to the propertyaddress. The notice will include the name of thelender asking for the propertys sale, the propertyaddress, the reason for the request, and the timeand location of the hearing. The homeowner doesnot have to attend the hearing. The judge willdecide if the lender is entitled to have the housesold. If the judge rules for the lender, the judge willissue an order called writ of execution.


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One important difference in a judicial foreclosure,after the sale of the property, is the right of theformer homeowner to recover the house within180 days, known as the redemption period. Toredeem the house within this period, the formerhomeowner, following a formal notification pro-cess, must notify the new owner of that intention.The former homeowner must pay the new owner,whether a person or the financial institution, theamount paid at the sheriffs sale to purchase thehouse, including applicable interest. The totalamount to redeem the property may also includepayments made by the purchaser for propertytaxes, insurance, and other expenses to maintainthe house in good condition.

In the nonjudicial process, where the documentsecuring the loan is a Deed of Trust, with a powerof sale given to the trustee, the parties involved

in this model are the beneficiary, which isthe financial institution or investor you owe themoney to; the trustee, which is the neutral thirdparty to whom you conveyed or transferredtemporarily the title of your house to be held intrust until your loan is paid off; and you as a bor-

rower or grantor. This process applies to owneroccupied, one-to-four unit, single-family dwellings.

A nonjudicial process of foreclosure by adver-tisement and sale commonly starts if you, thehomeowner, are in defaultby not making yourmortgage payments as agreed and they have been

continuously late. After trying to contact you tobring your mortgage payments current, the finan-cial institution collecting your payments will giveinstructions to the trustee to start the foreclosureprocess or, in lending jargon, accelerate the loan.First, the trustee will file aNotice of Defaultin the

county records where the house is located. Whenthe notice of default is recorded, the foreclosureprocess becomes public information and it willtake approximately 120 to 180 days until the houseis sold or transferred. Immediately after the filingof the notice of default, the trustee will send to you

and all parties with an interest in the property, aNotice of Trustees Sale or Trustees Notice ofSale. You will also receive a notification about


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your right to request a face-to-face mediationmeetingwith the lender or its representative.The purpose of the mediation meeting is so theparties involved - the lender, you, and a media-tor - can attempt to come to agreement to avoidforeclosure. The foreclosure can be avoided by

applying various options available from thefinancial institution, such as aforbearance, loanmodification, pre-foreclosure sale or short sale,or voluntarily giving up the title of the house,commonly known as deed-in-lieu of foreclosure.We gave a brief explanation about these options

earlier in this publication.A word about the mediation process

If a mediation service provider sends you anotification about your right to have a meetingwith your lenders representative, act imme-diately. The first step: Meet with a certifiedHousing and Urban Development (HUD) non-profit counselor within 30 days after receivingthe mediation notification form. The resourcessection has a link to find an approved housingcounselor. The notification of your right to amediation meeting will include informationfor the Lawyer Referral Services of the OregonState Bar and providers of low-cost legal ser-vices. The form will include a list of options toavoid foreclosure. Even if you are not currentlyin the foreclosure process, you can also requesta mediation meeting with your lender, if youwere 30 days late on your loan payment at leastone-time and your financial situation will likelynot improve. You can request a mediation meet-ing by using a form available from a mediationservice provider approved by the OregonAttorney General. See the resources section fora link to that agency.

You will also be notified about the documentsyou need to bring with you to the meeting.Consult an approved housing counselorbecause the counselor will be able to better

prepare you for the mediation meeting,including the paperwork you need to bringwith you and other conditions you will have


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to meet. One condition is to pay a fee (not toexceed $200) to the mediator at least 10 days

before the meeting.

If you are not able to meet with an approved hous-ing counselor within 30 days, you can still requesta mediation meeting, but you must submit an affi-

davit to the mediator stating the reason why youcould not consult an approved housing counselor.The resources section of this brochure has a linkto the Attorney Generals office with informationabout how to obtain the affidavit and other impor-tant instructions.

You do not have to agree to attend the mediationmeeting if you choose not to. You can notify themediator at the address or contact informationprovided in the mediators notice about your deci-sion. Visit the Attorney Generals office websiteprovided in this publication.

You have the right to reinstate your loan by bring-ing your loan current, in addition to paying thelate fees and the expenses to foreclose, but youshould do this no later than five days before thesale (auction date) of the house.

If, after exhausting all your options, you were notable to reach an agreement with the lender to saveyour house and unless the lender decides to post-pone the sale, the trustee will conduct a trusteessale at the place and time noted on the Trustees

Notice of Sale. Oregon law allows a postponement

of the sale for up to 180 days. The postponementwill be announced at the time and place of thescheduled sale date and a written notification will

be also be sent to the homeowner at least 15 daysbefore the new sale date, unless the first postpone-ment is for less than two days from the sale date.

Oregon law requires trustees to provide home-owners additional notifications. One is the

NOTICE: YOU ARE IN DANGER OF LOSINGYOUR PROPERTY IF YOU DO NOT TAKEACTION IMMEDIATELY. Trustees mustprovide this notification to the homeowner at the

same time or before the required notification thatthe house is in pre-foreclosure.


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The purpose of the notice of home loss danger isto promptly and clearly notify homeowners whooccupy the property as their primary residenceabout the risk of losing their homes and, if possible,what the homeowners could do to try to save theirhomes. The notification also must include a toll-free number where homeowners can call to getinformation about approved nonprofit providersof foreclosure prevention counseling programs indifferent areas of the state. The notice also includescontact information for the Oregon State BarsLawyer Referral Service if you decide to hire alawyer. Low-income homeowners can also ask forlegal assistance.

If you receive such notification, we strongly rec-ommend calling the toll-free number providedand seek help from an approved counselor or legalassistance in your area. Approved nonprofit coun-

selors are trained to facilitate the interaction withlenders and, in many cases, increase the possibil-ity in obtaining the best possible solution. Theirservices are often free of charge or have a smallnominal fee for credit reports.

Potential tax consequencesIf you have exhausted all of these options and yourlender agrees to settle the debt before foreclosureor if the house is foreclosed upon, it is important totalk to a tax adviser. The Internal Revenue Servicehas a publication (Publication 4681) with details

about how these situations may affect your incometaxes.

The Mortgage Forgiveness Debt Relief Actamends the Internal Revenue Code, providingmore exclusions for some homeowners who lost

their homes if occupied as their primary resi-dence to foreclosure and the lender canceledor forgave a debt secured by the house. Thistemporary federal law can be applied for residentialdischarged debts for those homeowners who losttheir homes to foreclosure or had an agreement

with the lender about a forgiven amount from2007 through 2013. See the resources section underCancellations of Debt.


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Making Home Affordable ProgramThe Making Home Affordable Program, an initia-tive that is part of the presidents economic stimulusplan, include programs for homeowners whooccupy their houses and use them as their primaryresidence. The Home Affordable Modification

Program (HAMP), the Home AffordableRefinance Program (HARP), the Home AffordableForeclosure Alternative (HAFA),and other reliefprograms have other conditions homeowners mustmeet to qualify.

Under HAMP and HARP, and depending on your

circumstances, you can request your lender refi-nance or modify your loan. Your lender is requiredto review your application for a loan modificationor refinancing if your loan is insured or ownedby Fannie Mae or Freddie Mac. These agencieshave other programs you should ask for if you donot qualify for programs under HAMP. See theresources section for information about finding outif your loan is owned by one of these agencies. TheMaking Home Affordable Program website alsooffers an initial, basic questionnaire to help youdetermine if you qualify and a list of documentsyou should prepare and review, preferably inadvance. We encourage you to seek the help of anapproved nonprofit counseling agency if you do notfeel comfortable in completing this application doc-umentation. Beware of fake and deceptive websites

and companies or individuals offering help. Youshould not have to pay for help or information tobenefit from these and other legitimate programs.

Other optionsFor homeowners age 62 or older, another option

may be a loan program called reverse mortgage.The most common is the Home Equity ConversionMortgage (HECM), administered by the FederalHousing Administration. This type of loan, unlikea regular mortgage, does not have to be paid backunless the house is no longer occupied as the pri-

mary residence or is sold. It is very important thatyou seek counseling before obtaining this type of


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loan, because it may not be the type of loan you areinterested in. See the resources section of this guideabout how to find a HUD-approved nonprofit orga-nization near you that offers counseling on a reversemortgage.

Beware of foreclosure scamsHomeowners should beware of foreclosure scams.Scammers can cause you to lose your home and theequity you have built and cause additional damageto your credit. As mentioned earlier, at a minimum,you should find out if these companies or individu-als are either registered or licensed to offer theirservices in Oregon. This is true for in-state and out-of-state companies or individuals.

Many scammers contact homeowners offering tosave their house. Information about your propertyis public record and accessible by anyone interested

in obtaining it. In addition to the informationrecorded with the county when you bought yourhouse, notifications of default filed by the lenderor a lien holder, or if the house is subject to anauction or to be foreclosed, are all public record.Unscrupulous individuals can use this information

to take advantage of homeowners in distress.Some homeowners facing foreclosure may respondto ads offering to pay cash immediately for houses.Although this sounds like a quick solution, it maynot be the right option if your ultimate goal is tokeep your home. Be careful; many of these offers

may also be scams.The schemes vary depending on what the scammeris trying to obtain. For example:

Scammers advertise their services to negotiatewith the lender on behalf of the homeowner to

save the house. They often collect high up-frontfees, which is illegal in Oregon, and prohibit thehomeowner from contacting the lender so theprocess will not be disrupted. Most scammersdo very little or nothing to help consumers,and they often disappear with the money or

no longer can be contacted. The most oftenabuse to homeowners is when they are seekingassistance to apply for loan modifications. The


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scammers claim they have secret techniquesor strategies to convince the lender to modifya loan. The scammers may ask to be paid incash or other form of payment, which wouldinclude access to your financial informationand then they disappear or are no longerresponding to phone calls.

In other cases, scammers convince the home-owner to convey or give up the houses titlewith the promise to return the house after ithas been taken out of the foreclosure process.Scammers commonly pay the homeowner an

amount significantly less than the homes realvalue. In some cases, the deal includes a rentalagreement where the homeowner pays rent,which can be more than the original mortgagepayment. The homeowner is still responsiblefor the payment of taxes, insurance, and other

obligations as if nothing has changed except forthe ownership of the house. The scammer canevict the homeowner if he or she does not paythe rent.

Some scammers claim to help homeownerssave their house by refinancing the loan in

default. They ask the homeowner to sign papersthat appear to be refinancing or lease-to-buyagreements. But, in most cases, the documentsgive the scammer the title of the house.

Other scammers ask for the mortgage paymentsto be sent to them instead of the lender, they donot send the payments to the lender and disap-pear with all the money collected.

Remember, if you are a victim of a scammer, youmay not be only paying them high up-front fees,but you are also exposing your financial informa-

tion, often including Social Security numbers, bankaccounts, and other sensitive information, whichcan lead to identity theft.

After verifying Oregon licensing requirements, anyand all documents should be carefully reviewedbefore they are signed.


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Resources

General information / counties:

Oregon countieshttp://bluebook.state.or.us/local/counties/counties.htm

Property tax deferral programs:

Department of Revenuewww.oregon.gov/DOR/SCD/index.shtml503-378-4988

Real property foreclosure (unpaid propertytaxes):

http://www.oregon.gov/DOR/PTD/IC_310_671.shtml

Construction or mechanics liens:

Construction Contractors Boardhttps://ccbed.ccb.state.or.us/WebPDF/CCB/Publications/information%20notice%20liens.pdf

503-378-4621

Federal tax liens:IRSwww.irs.gov/businesses/small/article/0,,id=108339,00.html#Notice888-297-8685

Cancellations of Debt (COD):

Mortgage Forgiveness Debt Relief Act, IRSwww.irs.gov/newsroom/article/0,,id=174034,00.htmlSee also:

http://www.irs.gov/pub/irs-pdf/p4681.pdf

Mortgage servicing information:

Making sure your payments are properly creditedFederal Trade Commission

www.ftc.gov/bcp/edu/pubs/consumer/homes/rea10.shtm
http://bluebook.state.or.us/local/counties/counties.htmhttp://bluebook.state.or.us/local/counties/counties.htmhttp://www.oregon.gov/DOR/SCD/index.shtmlhttp://www.oregon.gov/DOR/PTD/IC_310_671.shtmlhttp://www.oregon.gov/DOR/PTD/IC_310_671.shtmlhttps://ccbed.ccb.state.or.us/WebPDF/CCB/Publications/information%20notice%20liens.pdfhttps://ccbed.ccb.state.or.us/WebPDF/CCB/Publications/information%20notice%20liens.pdfhttp://www.irs.gov/businesses/small/article/0,,id=108339,00.html#Noticehttp://www.irs.gov/businesses/small/article/0,,id=108339,00.html#Noticehttp://www.irs.gov/newsroom/article/0,,id=174034,00.htmlhttp://www.irs.gov/newsroom/article/0,,id=174034,00.htmlhttp://www.irs.gov/pub/irs-pdf/p4681.pdfhttp://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea10.shtmhttp://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea10.shtmhttp://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea10.shtmhttp://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea10.shtmhttp://www.irs.gov/pub/irs-pdf/p4681.pdfhttp://www.irs.gov/newsroom/article/0,,id=174034,00.htmlhttp://www.irs.gov/newsroom/article/0,,id=174034,00.htmlhttp://www.irs.gov/businesses/small/article/0,,id=108339,00.html#Noticehttp://www.irs.gov/businesses/small/article/0,,id=108339,00.html#Noticehttps://ccbed.ccb.state.or.us/WebPDF/CCB/Publications/information%20notice%20liens.pdfhttps://ccbed.ccb.state.or.us/WebPDF/CCB/Publications/information%20notice%20liens.pdfhttp://www.oregon.gov/DOR/PTD/IC_310_671.shtmlhttp://www.oregon.gov/DOR/PTD/IC_310_671.shtmlhttp://www.oregon.gov/DOR/SCD/index.shtmlhttp://bluebook.state.or.us/local/counties/counties.htmhttp://bluebook.state.or.us/local/counties/counties.htm


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For FHA loans

Department of Housing and Urban Development(HUD) National Servicing Centerwww.hud.gov/ofces/hsg/sfh/nsc/nschome.cfm888-297-8685

Foreclosure Mediation Program:

Oregon Department of Justicewww.ForeclosureMediationOR.org

Nonproft Foreclosure Prevention counseling

agencies:http://www.cbs.state.or.us/dfcs/ml/foreclosure/counselors.htmlHUD approved housing counseling agencieshttp://www.hud.gov/ofces/hsg/sfh/hcc/hcs.

cfm?webListAction=search&searchstate=ORwww.211info.org

800-SAFENET, 800-723-3638National foreclosure hotline888-995-HOPE, 888-995-4673

http://www.hopenow.comHOPE Loan Portalwww.hopeloanportal.org

Other housing services:

Housing Connectionswww.housingconnections.org

Lawyer Referral Services:

Oregon State Bar Associationhttp://www.osbar.org/public/ris/ris.

html#referral800-452-7636Legal Aid Services of Oregonhttp://www.lawhelp.org/program/694/index.cfmOregon Law Center

http://www.oregonlawcenter.org
http://www.hud.gov/offices/hsg/sfh/nsc/nschome.cfmhttp://www.hud.gov/offices/hsg/sfh/nsc/nschome.cfmhttp://www.foreclosuremediationor.org/http://www.cbs.state.or.us/dfcs/ml/foreclosure/counselors.htmlhttp://www.cbs.state.or.us/dfcs/ml/foreclosure/counselors.htmlhttp://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=ORhttp://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=ORhttp://www.211info.org/http://www.hopenow.com/http://www.hopeloanportal.org/http://www.housingconnections.org/http://www.osbar.org/public/ris/ris.html#referralhttp://www.osbar.org/public/ris/ris.html#referralhttp://www.lawhelp.org/program/694/index.cfmhttp://www.oregonlawcenter.org/http://www.oregonlawcenter.org/http://www.lawhelp.org/program/694/index.cfmhttp://www.osbar.org/public/ris/ris.html#referralhttp://www.osbar.org/public/ris/ris.html#referralhttp://www.housingconnections.org/http://www.hopeloanportal.org/http://www.hopenow.com/http://www.211info.org/http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=ORhttp://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=ORhttp://www.cbs.state.or.us/dfcs/ml/foreclosure/counselors.htmlhttp://www.cbs.state.or.us/dfcs/ml/foreclosure/counselors.htmlhttp://www.foreclosuremediationor.org/http://www.hud.gov/offices/hsg/sfh/nsc/nschome.cfmhttp://www.hud.gov/offices/hsg/sfh/nsc/nschome.cfm


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Licensing and registration:

Registered Debt Management Service ProvidersOregon Division of Finance & Corporate Securi-tieshttp://www.dfcs.oregon.gov/debt_mgmt.htmlLicensed mortgage companies and loan originators

www.NMLSconsumeraccess.orgYour rights when hiring for prot companiesFederal Trade Commissionhttp://www.ftc.gov/opa/2010/11/mars.shtmDivision of Finance & Corporate Securities Q & A

http://www.dfcs.oregon.gov/debt_mgmt/faq_consumers.html

Filing complaints:

Debt management companies, Oregon-licensedloan originators, and state-chartered nancial

institutionsOregon Division of Finance & Corporate Securitieshttp://www4.cbs.state.or.us/ex/dfcs/complaint/index.cfm?fuseaction=home.english866-814-9710

Foreclosure scams:State Attorney General Ofcehttp://www.doj.state.or.us/nfraud/index.shtmlE-mail: [email protected]

National banks:

Ofce of the Comptroller of the Currencywww.helpwithmybank.gov800-613-6743

Federal credit unions:National Credit Union Administrationhttp://www.ncua.gov/Resources/ConsumerIn-formation/Complaints/index.aspx
http://www.dfcs.oregon.gov/debt_mgmt.htmlhttp://www.nmlsconsumeraccess.org/http://www.ftc.gov/opa/2010/11/mars.shtmhttp://www.dfcs.oregon.gov/debt_mgmt/faq_consumers.htmlhttp://www.dfcs.oregon.gov/debt_mgmt/faq_consumers.htmlhttp://www4.cbs.state.or.us/ex/dfcs/complaint/index.cfm?fuseaction=home.englishhttp://www4.cbs.state.or.us/ex/dfcs/complaint/index.cfm?fuseaction=home.englishhttp://www.doj.state.or.us/finfraud/index.shtmlmailto:consumer.hotline%40doj.state.or.us?subject=http://www.helpwithmybank.gov/http://www.ncua.gov/Resources/ConsumerInformation/Complaints/index.aspxhttp://www.ncua.gov/Resources/ConsumerInformation/Complaints/index.aspxhttp://www.ncua.gov/Resources/ConsumerInformation/Complaints/index.aspxhttp://www.ncua.gov/Resources/ConsumerInformation/Complaints/index.aspxhttp://www.helpwithmybank.gov/mailto:consumer.hotline%40doj.state.or.us?subject=http://www.doj.state.or.us/finfraud/index.shtmlhttp://www4.cbs.state.or.us/ex/dfcs/complaint/index.cfm?fuseaction=home.englishhttp://www4.cbs.state.or.us/ex/dfcs/complaint/index.cfm?fuseaction=home.englishhttp://www.dfcs.oregon.gov/debt_mgmt/faq_consumers.htmlhttp://www.dfcs.oregon.gov/debt_mgmt/faq_consumers.htmlhttp://www.ftc.gov/opa/2010/11/mars.shtmhttp://www.nmlsconsumeraccess.org/http://www.dfcs.oregon.gov/debt_mgmt.html


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Consumer Financial Protection Bureau:

www.consumernance.govFederal Trade Commission:https://www.ftccomplaintassistant.gov

Bank members of the Federal Reserve System:

Federal Reserve Boardhttp://www.federalreserveconsumerhelp.gov/888-851-1920Federally insured state banks not members of theFederal Reserve Systemhttps://www2.fdic.gov/starsmail/index.asp877-275-3342

Loan programs:

Making Home Affordable Programhttp://www.makinghomeaffordable.gov

Oregon Homeownership Stabilization Programhttp://www.oregonhomeownerhelp.org/Reverse mortgagesFHA Home Equity Conversion Mortgage(HECM)

http://www.hud.gov/ofces/hsg/sfh/hecm/hecmhome.cfm

To see if you have a Fannie Mae loan

http://loanlookup.fanniemae.com/loanlookup1-800-7FANNIE

To see if you have a Freddie Mac loan:

http://www.freddiemac.com/corporate1-800-FREDDIEFannie Mae, Deed for Lease program

https://www.efanniemae.com/sf/servicing/d4l/pdf/d4lborrowerinstructions.pdfFreddie Mac, REO Rental Initiativehttp://www.freddiemac.com/avoidforeclosure/rental_initiative.html
http://www.consumerfinance.gov/https://www.ftccomplaintassistant.gov/http://www.federalreserveconsumerhelp.gov/https://www2.fdic.gov/starsmail/index.asphttp://www.makinghomeaffordable.gov/http://www.oregonhomeownerhelp.org/http://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfmhttp://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfmhttp://loanlookup.fanniemae.com/loanlookuphttp://www.freddiemac.com/corporatehttps://www.efanniemae.com/sf/servicing/d4l/pdf/d4lborrowerinstructions.pdfhttps://www.efanniemae.com/sf/servicing/d4l/pdf/d4lborrowerinstructions.pdfhttp://www.freddiemac.com/avoidforeclosure/rental_initiative.htmlhttp://www.freddiemac.com/avoidforeclosure/rental_initiative.htmlhttp://www.freddiemac.com/avoidforeclosure/rental_initiative.htmlhttp://www.freddiemac.com/avoidforeclosure/rental_initiative.htmlhttps://www.efanniemae.com/sf/servicing/d4l/pdf/d4lborrowerinstructions.pdfhttps://www.efanniemae.com/sf/servicing/d4l/pdf/d4lborrowerinstructions.pdfhttp://www.freddiemac.com/corporatehttp://loanlookup.fanniemae.com/loanlookuphttp://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfmhttp://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfmhttp://www.oregonhomeownerhelp.org/http://www.makinghomeaffordable.gov/https://www2.fdic.gov/starsmail/index.asphttp://www.federalreserveconsumerhelp.gov/https://www.ftccomplaintassistant.gov/http://www.consumerfinance.gov/


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Oregon foreclosure laws and bills

Judgments: ORS Chapter 18

Mediation and Arbitration: ORS Chapter 36

Mortgages, trust deeds: ORS Chapter 86

Statutory liens: ORS Chapter 87

Foreclosure of mortgages and other liens:ORS Chapter 88

Foreclosure of property tax liens:ORS Chapter 312

http://www.foreclosurehelp.oregon.gov/DCBS/

foreclosurehelp/laws.shtml

Glossary

Deed of trust

In Oregon, a debt is often secured by a deed oftrust rather than a mortgage, which means thereis a neutral third party called a trustee. If the bor-rower does not make the mortgage payments, thelender will instruct the trustee to sell the propertyto pay off the debt. This document is also known as

the security instrument. (ORS 86.705)DefaultIn the foreclosure process, a default is defined asa failure to meet one or more of the terms of themutually agreed upon contract when the mortgage

loan was obtained.Defciency judgment or defciency claimIf a home is sold through foreclosure or a short saletransaction for less than the amount the borrowerowes, the balance is the deficiency. In some cases,lenders may pursue borrowers to collect the defi-

ciency. Under certain circumstances affecting thelien or liens, Oregon law does not allow deficiencyjudgments if the house or dwelling was occupiedas a primary residence by the borrower and a saletook place (ORS 86.770)

Escrow accountA type of account administered by the lender/ser-vicer into which the borrowers funds are deposited
http://www.leg.state.or.us/ors/018.htmlhttp://www.leg.state.or.us/ors/036.htmlhttp://www.leg.state.or.us/ors/086.htmlhttp://www.leg.state.or.us/ors/087.htmlhttp://www.leg.state.or.us/ors/088.htmlhttp://www.leg.state.or.us/ors/312.htmlhttp://www.foreclosurehelp.oregon.gov/DCBS/foreclosurehelp/laws.shtmlhttp://www.foreclosurehelp.oregon.gov/DCBS/foreclosurehelp/laws.shtmlhttp://www.foreclosurehelp.oregon.gov/DCBS/foreclosurehelp/laws.shtmlhttp://www.foreclosurehelp.oregon.gov/DCBS/foreclosurehelp/laws.shtmlhttp://www.leg.state.or.us/ors/312.htmlhttp://www.leg.state.or.us/ors/088.htmlhttp://www.leg.state.or.us/ors/087.htmlhttp://www.leg.state.or.us/ors/086.htmlhttp://www.leg.state.or.us/ors/036.htmlhttp://www.leg.state.or.us/ors/018.html


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to pay for property taxes, insurance premiums,and, in some cases homeowners association dues.Oregon law allows lenders to collect enough fundsfor property tax reserves for two additional monthsover the actual amount needed. (ORS 86.240)

Grantor vs. debtor

In a nonjudicial foreclosure, a grantor is the indi-vidual or individuals who obtained a mortgageloan for the purchase or refinance of a home. In areal estate judicial foreclosure, this person or per-sons are identified as the debtor.

ForbearanceA forbearance is an agreement by which the lenderwill either temporarily suspend or reduce payments.Forbearances are generally used to address situa-tions that are short-term in nature. Lenders may bewilling to work with you on a payment plan, which

can temporarily help you until you are in a betterfinancial situation if you are expecting funds fromother sources, such as settlements or tax returns, inthe near future. You need to show documentationabout the money you are anticipating.

Judicial vs. non-judicial foreclosure

A judicial foreclosure means the process of takingthe house would go to a judge as a lawsuit againstthe homeowner (ORS 18.901). A non-judicial foreclo-sure does not go to court and is not heard by a judge.If your deed of trust document has a power-of-saleclause, the trustee representing the lender can initi-ate a non-judicial process in a foreclosure by adver-tisement and sale process. (ORS 86.735)

LienA hold or a claim placed on a property to secure thepayment of a debt or other obligation. (ORS Chapter 87)

Mediation meeting in a nonjudicialforeclosureOregon law requires some lenders to enter into afee-based mediation process by meeting face-to-face with a homeowner to seek alternatives to fore-

closure. The meeting will include a neutral thirdparty who will be conducting the meeting follow-ing a protocol established by the Attorney General.


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Homeowners and lenders are required to bringspecific relevant documents. A list of documentsto be presented by both parties will be providedbefore the meeting (ORS 86.735(4)). Refer to theAttorney Generals website or the notifications youreceived for information about the fees to be paidfor the mediation meeting.

Mechanics or construction lienThis type of lien can be placed by anyone whomade an improvement or provided materialsfor your house. Subcontractors or laborers canplace a lien on your house as well. Contact the

Construction Contractors Board to learn about yourrights. (ORS 87.001 to 87.060) and (87.075 to 87.093)

Note or promissory noteThis document, which you should have receivedwhen you closed your loan, has the details and

conditions under which you borrowed the moneyto buy your house. The note includes but is notlimited to the amount of money you borrowed,the interest rate, the amount of your payments,when they are due, the grace period, late fees andwhether the lender would accept partial payments,

and how these would be credited against youraccount.

Notice of DefaultA notification filed by the trustee in the countyor counties where the house is located, followinginstructions from the lender/servicer after unsuc-cessfully tried to collect the monthly mortgagepayments due. (ORS 86.735(3))

Notice of HearingOregon law requires the lender or its representativeto notify the homeowner with a notification about

a hearing regarding the sale of the house to satisfythe debt. (ORS 18.908)

Notice of Trustee SaleAlso known as Trustees Notice of Sale, it is the offi-cial notification to the homeowner that the lender

chose to initiate the foreclosure process. Oregonrequires additional forms to be sent as warning ofthe risk of losing the home. (ORS 86.740)


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Qualifed Written RequestSection 6 of the Real Estate Procedures Act (RESPA)gives borrowers the right to file a complaintby sending to the servicer a written request toobtain specific information about the servicing oftheir loan which includes payment information.Servicers are required to acknowledge the requestwithin 20 business days and must try to resolve theissue within 60 business days.

Redemption and redemption periodHomeowners whose house was sold by the sheriffunder the courts authorization have the right to get

the house back within 180 days. Other parties withan interest in the property can also redeem the prop-erty in less number of days. (ORS 18.963, ORS 18.964)

ServicerA lender, mortgage company, or similar financial

institution in charge of collecting and recordingmortgage payments, negotiate possible solutionsto foreclosure, or supervise a foreclosure processin case the borrower default on the loan or loanssecured by the property.

Servicing disclosureThis required notification provided by your lenderor the servicer of your loan within three days afterapplying for a mortgage loan. It will notify you ofyour rights and other important information whenyour loan is sold or transferred. The notificationwill give you contact information, including a toll-free number, if you have questions when your loanhas been sold or transferred to another institution.This disclosure also includes information aboutwhat you can expect if you file a complaint or dis-pute with the company holding your loan.

Trustees saleThe trustee, following instructions from the lender/servicer, will conduct the auction of the property asnoted in the Trustees Notice of Sale. If the propertyis sold to a bidder or transferred back to the bank,the trustee will deliver the title to its new owner

within 10 days after the sale date. The new owneris entitled to take possession of the property on the10th day after the sale date. (ORS 86.755)


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Truth-in-lending disclosureA document you should also have received fromyour lender within three business days after youapplied for a mortgage loan. In it you will find,among other clauses, when your payments are due,a grace period, if any, for late payment charges, ifyour loan is assumable or transferable to anotherborrower, and if your loan has a pre-paymentpenalty.

Writ of executionA court order to authorize the sheriff to take pos-session of a house and sell it to recover the money

owed to the creditor.


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Dos and Donts Establish an emergency fund.

Make sure your payments are credited/postedproperly. Review your statements when youreceive them.

Contact your lender as soon as you foreseedifficulties in making your loan payments.

Seek the assistance of an approved counseloror an attorney as soon as possible if youreceive notifications your house is or will bein foreclosure.

If you are seeking help from a for-profitcompany or individual, make sure they areregistered or licensed in Oregon.

Ask if your unpaid mortgage payments can beadded to your mortgage principal.

If you are unable to resume the regularmonthly payments, ask the lender for timeto sell your house to pay off the mortgagebalance.

If your lender forecloses on your house, talk toa tax adviser. The foreclosure may affect yourtax filings if the house sells for less than theamount you owe on your mortgage.

Donts Dont overuse your equity to consolidate other

debt.

Dont ignore late payment notifications fromyour lender.

Dont respond to offers in the mail or mediaoffering good deals to refinance.

Dont give direct access to your bank accountsor give your personal identification number.

Dont sign any documents you dont under-stand and dont pay money in advance.

Dont respond to offers to save your house.

Dont give away the title of your house with-out first consulting with an attorney.


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Oregon Department ofConsumer and Business Services

Division of Finance and Corporate Securities

350 Winter St. NE, Room 410P.O. Box 14480

Salem, OR 97309-0405

Toll-free: 866-814-9710

DFCS: dfcs.oregon.govForeclosure: www foreclosurehelp oregon gov
http://www.foreclosurehelp.oregon.gov/http://www.foreclosurehelp.oregon.gov/http://www.foreclosurehelp.oregon.gov/http://www.foreclosurehelp.oregon.gov/http://localhost/var/www/apps/conversion/tmp/scratch_7/dfcs.oregon.gov

Oregon Foreclosure Details.pdf

Documents

Transcript of Oregon Foreclosure Details.pdf