- 1). Assess your financial situation. Though you are having issues making your full mortgage payments, determine the amount you could pay each month. Whether this is 50 or 80 percent of your total monthly mortgage, establish a firm number that is feasible.
- 2). Know that there are two types of foreclosures in Oregon: judicial and non-judicial. Non-judicial foreclosures are the most common, since they are much faster than judicial foreclosures. For judicial foreclosures, a court hearing is required. Non-judicial foreclosures simply require a trustee to comply with laws and sell the property.
- 3). Be aware that you must be properly notified of the foreclosure and sale. If the trustee does not follow procedure, you can stop a foreclosure in Oregon. The notification of sale must include your name and address, a legal description of the property, the reason for the foreclosure, the total amount owed on the property, and the date and time of the sale. You must also receive a notification of default from your lending institution at least 120 days prior to the sale date of the house. This notification states that you have defaulted on your loan, and that foreclosure proceedings have been initiated.
- 4). Pay the past due amount on your loan. Under Oregon state law, you have the right to stop home foreclosure if you make your loan current. You must pay past due amounts and any expenses incurred by the loaning institution as a result of your late payments and the foreclosure process. You must do this at least 5 days before the scheduled auction if you wish to stop the foreclosure process.
- 5). Know that the trustee must publicize the time and date of the property auction at least 20 days before it is scheduled. As of June 2008, the trustee is required to furnish you with a Notice of Home-Loss Danger at or before the actual foreclosure notification. If you do not receive such notification, contact Oregon's Housing and Community Services office. You can also seek legal recourse with the help of an Oregon foreclosure attorney.
- 6). Contact your lender. Most banks and credit unions in central Oregon want to keep borrowers in their homes and avoid foreclosure. They are often willing to work with borrowers to find a solution.
- 7). Inform your lender immediately if you think you may miss a payment. If you inform them ahead of time, you will have fewer repercussions.
- 8). Talk to your lending institution about a loan modification. This involves changing one or more aspects of your loan. Often, loan modifications change the interest rate or length of the loan. You'll need to sign a new contract when the loan is modified.
- 9). Refinance your home. When you get a refinance loan, you can often obtain a lower interest rate and lower monthly payments. With this lesser monthly amount, you are more likely to manage your mortgage payments. You must apply for a refinance loan before your home enters the pre-foreclosure stage.
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If the foreclosure process has already started, search for a lawyer who can help you keep your home. You can find Oregon lawyers via the Oregon State Bar website. (Follow the link in Resources.) - 11
Sell your home. In an effort to pay off your mortgage, you can sell your home and then repay your entire mortgage loan. While you will avoid foreclosure, you will have to move, and you may not make a profit once you repay your mortgage. - 12
Talk to housing specialists at Oregon's Housing and Urban Development (HUD) office. Housing counselors are on hand to provide you with information on the foreclosure process. - 13
Speak to a financial counselor at the Federal Housing Administration (or FHA) office. A counselor will be able to provide you with information on financial relief for troubled homeowners.
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