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Before you start

Obtaining a loan modification is one way to avoid foreclosure and stay in your home; however, the process can be challenging. Loan modifications are often available through your lender/servicer, or you can apply for the federal government's Home Affordable Modification Program (HAMP). Whether you apply for a loan modification with the assistance of a counselor or do it yourself, there are crucial steps you should take to increase your chances of success.

Take the following steps before you start the loan modification process:

  1. Carefully analyze your financial situation to determine if you can realistically afford to keep your house, even after a loan modification.
  2. Make sure you can demonstrate that you are at imminent risk of not being able to make your house payments, including property taxes, insurances, and homeowner association fees, if applicable. You do not have to be late on your mortgage payments to obtain a loan modification.
  3. Make sure your documents are recent, legible, and provide clear and sufficient information. All the submitted documentation will be subject to verification.
  4. Understand the timelines and how the foreclosure process works in Oregon. Your lender/servicer must comply with state laws before it can foreclose.
  5. Know your rights and obligations.
  6. If you decide to hire a private company or individual to help you apply for a loan modification, make sure it is registered to do business in Oregon.
  7. Be proactive, have lots of patience, and don't give up.

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