Tips to prevent foreclosure

After moving into your new house, review your loan documents, such as the Deed of Trust and note. Familiarize yourself with how payments are credited and what your rights or responsibilities are if you miss mortgage payments. Make note of the loan servicer and when the monthly payment is due.

A mortgage payment is a major monthly expense. Carefully evaluate your financial situation and create a budget.

Track where your money goes. Focus on spending less than you earn every month. Establish an emergency fund to cover monthly expenses, such as mortgage payments, if you are out of work or experience a loss of income.

​​Your house may be subject to foreclosure for not paying property taxes. In Oregon, property taxes are due Nov. 15 each year. Taxes can be paid in three installments: Nov. 15, Feb. 15, and May 15.

Sometimes, property taxes are collected by your mortgage servicer as part of your monthly payment. It is set aside in an escrow account on your behalf, and paid by the servicer when it is due. If the servicer does not escrow your taxes, you must be prepared to make the tax payments when they are due. Set aside money each month to prepare to make property tax payments. If you are not sure who is paying the taxes, contact the county where your house is located to find out if you or the servicer pays the property taxes.

A lien is a legal right or claim against a property by a creditor. This gives the creditor access to the property if debts are not paid. If you decide to refinance or sell the property, the lien will be satisfied out of the proceeds before you receive any money.

A mortgage is the most common lien on your house. You pay off the debt over time, or from the proceeds when the home is sold. That satisfies the lien. If you do not pay your property taxes, the municipal government has the right to place a lien on the property. A lien holder has the right to seize and sell the property to satisfy the lien, so it is important to keep your home free of unnecessary liens.

The loan servicer must send you notice before your loan is sold, transferred, or assigned to another company. None of the original terms and conditions of your loan can be changed, but the company you send the mortgage payments to will change. Stay on top of this transfer or sale so payments are made to the correct servicer. Do not throw away any mail without reading it first because it may be from your new loan servicer.

If you see an error in your statement or incorrect information about the servicing of your loan, send a written request – preferably by certified mail – to the address provided. Describe the specific errors or discrepancies. Follow up with phone calls; keep a log of all communication. Get the lender’s response in writing. Continue making your regular payments during this time.