An official website of the State of Oregon
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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
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
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
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
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
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
Learn more about
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)
For Freddie Mac: 1-800-FREDDIE (5 a.m. to 5 p.m. PT)
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