Foreclosure Notice
Required by Senate Bill 628 (2009), modifying the provisions
of House Bill 3630 (2008)
Please note: As of January 2, 2012, trustees will no longer
be required to provide a loan modification request form or record an affidavit
of compliance when initiating a non-judicial foreclosure. See below for details.
A foreclosure requirement was adopted by the 2008 Legislature, and modified
by the 2009 Legislature. The law requires a notice be sent to any homeowner
entering foreclosure.
Generally, the person handling the foreclosure process for
the property on behalf of the lender (known as the "trustee") will
be responsible for sending the homeowner this notice. By the time a trustee
enters into the county records a notice that a borrower is in default on a
residential mortgage, the trustee must also send the homeowner information
about how to stop the foreclosure process, the amount they would need to pay
to bring the loan current, and sources for counseling and advice.
Within this information, lenders are required to provide
a toll-free telephone number for the homeowner to get loan delinquency and
repayment information and for person-to-person consultation to discuss the
payment and loan term negotiation and modification options.
Each trustee must fill in his or her specific telephone numbers.
These numbers must be accessible to the homeowner during regular business
hours and provide person-to-person consultation with an individual who is
authorized to discuss the homeowner's payment and loan term negotiation and
modification options. These numbers must be toll-free other than the specific
exceptions provided in statute.
If the trustee knows that the property owner does not actually
reside at the property that is entering foreclosure, they must send the notice
to both the property owner and the occupant of the property (such as a renter)
by both first class and certified mail.
In a non-judicial foreclosure initiated by a recording of
a notice of default after January 2, 2012, only the foreclosure notice is
required. Below is a downloadable copy of the form for use after January 2,
2012.
In a non-judicial foreclosure initiated by a recording
of a notice of default between September 28, 2009, and January 1, 2012, Oregon
law requires:
1. A loan modification request and review
2. A meeting between the lender and homeowner to discuss a modification
3. An Affidavit verifying compliance with the loan modification process filed
with county recorder
Loan Modification Request
Until January 2, 2012, Oregon law requires the lender or trustee to send
a form to the homeowner giving them the opportunity to request a loan modification.
The form must also give the homeowner the opportunity to request a meeting
with their lender for these discussions.
The homeowner has 30 days to return the loan modification
meeting request form to the lender. The lender then has 45 days to respond
as to whether the homeowner qualifies for a loan modification. The lender
would be prohibited from foreclosing on this property if they have not responded
to the homeowner within this time period.
Meeting between the lender and the homeowner
In addition to the loan modification review, the 2009 law gives the homeowner
the right to request a meeting with the lender. The meeting must be with
a representative who has the authority to make loan modification decisions.
The meeting can be in person or by telephone.
The homeowner must return the form to the lender within
30 days of receiving it. The lender is then responsible for scheduling a
meeting. The homeowner then has 7 days to respond to the lender about scheduling
the meeting.
This meeting must take place before the lender responds
to the homeowner’s loan modification request. This meeting with the
lender can be in person or by telephone, as long as the lender representative
discussing the loan modification with the homeowner has the authority to
modify the loan.
Affidavit filed with county recorder
The lender must file an affidavit in the county where the house is located
that demonstrates that they followed the required process. (Note: DCBS does
not have any authority regarding the form or substance of this affidavit.)
If a homeowner does not receive a copy of this notice at
least 25 days before the trustee sells the home in foreclosure, then the
homeowner is treated like other creditors in a court action. Homeowners
should contact a licensed attorney if they have questions about this process.
The contact information the Lawyer Referral Service for the Oregon State
Bar is included on the form.
Forms
The Division of Finance and Corporate Securities developed a model foreclosure
notice that lenders must use to comply with Oregon law. It is designed to
be filled out electronically. The trustee must complete all forms that are
blank before sending it to the homeowner.
Foreclosures for which notices of default were recorded on or
after January 2, 2012
Foreclosures for which notices of default were recorded between
September 28, 2009 and January 2, 2012
