Foreclosure FAQs

State and federal laws provide renters with rights both before and after the foreclosure. For more information, go to the Oregon State Bar’s Tenants in Foreclosed Housing webpage.

You may qualify for a loan modification if you demonstrate and document that you are at risk of not being able to make your mortgage payments, but will be able to make them again in the future. Learn more about loss mitigation strategies.

If you are not able to make the payments and have other significant debts, such as credit cards and car payments, you will have trouble qualifying for a loan modification. However, you may qualify for a forbearance plan if you are unemployed.

Review the division’s resources page for programs that may help.

Forbearance is a temporary period of time during which a regular monthly mortgage payment is reduced or suspended. You will need to prove to your mortgage servicer that your situation will be improving soon and that you will be able to catch up and get back on track using an agreed-upon repayment plan.

You can still apply for a loan modification and stop the foreclosure process. In addition to the notice of sale, you should have received another document titled NOTICE: YOU ARE IN DANGER OF LOSING YOUR PROPERTY IF YOU DO NOT TAKE ACTION IMMEDIATELY. If you want to apply for a loan modification, you must respond to these notices within 30 days and send all the requested information as instructed by the lender or servicer. The lender or servicer must notify you within 45 days after receiving all the required information to determine if you qualify for a modification. If you are denied for a loan modification, the lender or servicer should provide an explanation why.

These steps, which the lender or servicer must comply with, are important because five days before the sale date (auction date), the trustee will file an affidavit with the county where your house is located, explaining in detail how the lender or servicer complied with the law and the above requirements. You can obtain a copy of the affidavit from the county records office where your house is located. Compare the information in the affidavit with your notes and records.

Generally, it is best to speak to your mortgage company first. If you have questions or concerns, you can access free housing counseling services from a HUD-approved counseling agency.

Companies that charge a fee for help with loan modifications or short sales in Oregon must be registered as a debt management service provider, licensed as a mortgage lender or loan originator, or be a licensed Oregon attorney. If you decide to hire someone, be sure they are licensed in Oregon and are only charging you the fees permitted by law.

Be wary of anyone who makes promises or guarantees success. Do not pay anyone up front, and do not send your loan payments to anyone but your loan servicer. Review these tips to avoid mortgage scams.

​Other options include short sale and deed in lieu of foreclosure. Learn more about loss mitigation strategies.

Immediately contact your loan servicer and ask to be considered for foreclosure assistance. You may also contact a HUD-approved housing counseling agency for help.

In a short sale, the servicer allows the homeowner to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the mortgage. This is also referred to as a pre-foreclosure sale.

With the deed in lieu of foreclosure, the homeowner voluntarily transfers ownership of the property to the servicer in full satisfaction of the total amount due. The servicer may require the homeowner to list and market the property before they agree to a deed-in-lieu arrangement.

In order for the deed in lieu of foreclosure to work, the homeowner must provide a marketable title, free and clear of other mortgages, liens, or other property claims.

​Beware of:

• Any person or organization that asks for an upfront fee in exchange for counseling or the modification of a delinquent loan. Do not pay – walk away.
• Anyone who claims to be able to save your home if you sign or transfer over the deed to your house.​ Do not sign over the deed to your property to any organization or person unless you are working directly with your mortgage company to forgive your debt.
• Any person or business encouraging you to send your mortgage payments to them. Never make mortgage payments to anyone other than your mortgage company without its approval.

Learn more about mortgage scams.

1. Immediately contact your mortgage company or lender, and get the help you need to avoid foreclosure.​
   
2. Reach out to an expert at a HUD-approved housing counseling agency or by calling 888-995-HOPE (4673).
3. Report the scam to the Federal Trade Commission.

​Ask your mortgage lender or servicer, or use the contact information below to look up your loan.

For Fannie Mae:
1-800-2FANNIE (5 a.m. to 5 p.m. PT)
www.knowyouroptions.com/loanlookup

For Freddie Mac:
1-800-FREDDIE (5 a.m. to 5 p.m. PT)
https://myhome.freddiemac.com/resources/loanlookup