Senate Bill 628 provides foreclosure mediation in Oregon.

Back in 2009 the Oregon Legislatures passed Senate Bill 628. This bill put into a place a mandatory law that requires banks and lenders to meet with any homeowner who is facing a foreclosure. The meeting can either occur face to face or over the phone, but it does need to occur. The purpose is to determine whether the borrower qualifies for a loan modification or some other type of solution that could stop the foreclosure, and save the borrowers home. A loan modification is just one option that could help borrowers reduce their interest rate, lower their monthly payment reduce the amount of principal they owe, and overall it can help the person keep their home.

Beginning in October 2009 any foreclosure notice that was sent to a homeowner in Oregon who is late on their mortgage payments needs to include this new information. The notice needs to provide details on how the homeowner can meet with their lender and how they can request a loan modification. After reviewing the details, if the borrower requests it, the lender must meet with homeowner and offer assistance. They will need to show that they evaluated the borrower for a loan modification before foreclosing on the home. The homeowner can also decide to bring a mediator to this session, and this professional can help negotiate, or mediate, a solution to the crisis that benefits both the lender and borrower.





What steps should I take as a result of Oregon Senate Bill 628?

If you are one of the thousands of Oregonian homeowners who is seriously behind on your monthly mortgage payments and need assistance, and if you are facing a foreclosure, you should watch your mail for the new foreclosure notice. After you receive the notice as a result of Senate Bill 628, you should immediately take the following steps to have the best possible chance to save your home.

  • Complete the loan modification request form that will be provided in the notice.
  • Contact your bank or lender to set up a meeting to discuss a loan modification.
  • Decide if you want this to become a mediation session. Learn more on this process. If you do want to take this approach, bring in a counselor or mediator per below.
  • Call 1-800-SAFENET, which is a toll free foreclosure hotline, and ask to be referred to a nonprofit foreclosure counselor. This counselor can help homeowners request a loan modification. The counselor can also help mediate a solution.

You need to move rapidly. Homeowners should act fast, as per bill 628 they have only 30 days from the date of the foreclosure notice to request a loan modification. Thirty days should be plenty of time if you move fast.

For more information about the Oregon mediation program, options you may have, or Senate Bill 628, homeowners need to call the Department of Consumer and Business Services, Division of Finance and Corporate Securities, at 503-947-7854. Or feel free to call 1-800-SAFENET to be referred to a foreclosure counselor that can help you explore all the options you have.





By Jon McNamara

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