New rules governing foreclosures that take effect today were announced in a news release from the Department of Consumer and Business Services. The new law is designed “to help families stay in their home during this difficult economic climate.” This law requires lenders to meet with borrowers facing foreclosure, either in person or by phone, and evaluate whether they qualify for a loan modification.A loan modification could help borrowers lower their monthly payments and keep their home. “Oregonians are confronting a number of challenges during this economic downturn, including a growing number of families at risk of losing their home through foreclosure, Said Governor Ted Kulongoski. “By requiring lenders to meet with the homeowners, this law provides Oregonians another avenue to avoid foreclosure and stay in the home they worked so hard to attain.”

“Many homeowners may qualify for a loan modification, but often have a difficult time getting in touch with the right person at their lending company,” said Sen. Suzanne Bonamici, chair of the Senate Consumer Protection Committee. “This law gives Oregonians the tools they need to potentially save their home.”

The news release said that homeowners need to act fast, they have 30 days from the notice of foreclosure to request a loan modification. Hopefully, this new law will make a difference in the amount of time it takes the mortgage holder to respond to that request. There are also several resources available from those in serious foreclosure problems. For instance, the homeowner can call 1-800-SAFENET or log on to www.211info.org and ask to be referred to a nonprofit foreclosure counselor for assistance with a loan modification.

There is also a Homeownership Preservation Event (HOPE) scheduled for Medford on Oct. 17. To register go to www.access-inc.org or call 541-774-4305. The state has also launched a new website for homeowners at http://foreclosurehelp.oregon.gov. This site contains information and resources to help homeowners prevent foreclosure, avoid scams, and better understand the foreclosure process.

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