This government agency provides foreclosure assistance and prevention services to homeowners who are faced with losing their home to a mortgage default or foreclosure filing. They offer free counseling, advice, and other services. Learn more about how Oregon Housing and Community Services can provide you with support, including mortgage counseling and foreclosure help.
Oregon has received almost $100 million that will be used as part of the so called Hardest Hit Fund. The program will offer homeowners across the state access to five different resources that can provide mortgage assistance, loan, grants as well as foreclosure prevention tactics. The state agency of Oregon Housing and Community Services will be managing the program for the state. Read more on the Oregon Hardest Hit Fund.
The federal government has certified non-profit agencies across Oregon as HUD approved counseling centers. They offer extensive counseling, mortgage, and foreclosure assistance, much of which is free. More on Oregon HUD non-profit agencies.
Multnomah County as well as the greater Portland area is supported by several non-profit housing counseling agencies that offer a number of assistance programs. Homeowners can contact an organization for free or low cost foreclosure counseling, and to learn about ways to get mortgage help. Read more on Portland foreclosure assistance.
Home owners in Oregon can request a mediation session with their lender after they have missed their monthly mortgage payments and if they defaulted on their loan. The foreclosure mediation law requires that mortgage lenders meet with borrowers before foreclosing on their home, in an effort to find a solution. They need to meet with borrowers within a timely fashion to try to come up with a loan modification.
In addition to meeting with the homeowner, the bank or mortgage lender needs to submit an affidavit that they complied to the law and procedures explaining why the borrower does not qualify for an alternate payment plan or some type of mortgage modification. The lender is required to respond to a borrower in 45 days or fewer.
In addition, mediators will also be available to run calculations to find out if the borrowers could qualify for a loan modification. They will also determine if an attorney or mediator is needed during this process. If the mediator decides the borrower should get a loan modification and that they are qualified, the lender will then either have to grant it or face a penalty that would make it difficult to proceed with the foreclosure process. Click here to get more information.
In addition to the senate bill above, another mandatory foreclosure mediation program has become law in Oregon. All homeowners are provided the right to work with their lender and a third party mediator to find some type of solution to their housing crisis. All of the services are provided at a very low cost, or for free in some case. Read more Oregon foreclosure mediation.
Countrywide Financial Corp., now owned by Bank of America, has agreed to settle mortgage lawsuits and fraud claims in Oregon by modifying about 5,000 Oregon mortgages and paying over $1 million to the state to provide mortgage and foreclosure relief. Oregon Attorney General John Kroger announced the settlement and the resulting mortgage assistance that is being provided from Countrywide.
The agreement between the state and Oregon settles potential legal claims related to Countrywide’s involvement in a national mortgage fraud scandal. In addition to the cash payments and modifying terms, Countrywide has agreed to stop offering risky subprime mortgage loans and also stop funding loans that require little or no income documentation.
Countrywide has also agreed to modify interest rates and mortgage loan terms for Oregon households that obtained questionable mortgages. It is expected that the interest rates for thousands of borrowers will be lowered as a result of this. The company estimates the agreement will provide overall assistance of over $90 million in economic relief.
Some additional federal government funding from the hardest hit fund (see above) was used to create this mortgage assistance program. For those Oregon homeowners that have had a reduction in hours, income or who are classified as underemployed, the state can help them pay any outstanding balance on their account and also offer funds for go forward mortgage payments. Several income conditions also need to be met by applicants. Foreclosure counseling is also usually provided throughout this process as well. Learn more.
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