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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
Foreclosure Notice Form PDF Word

Foreclosures for which notices of default were recorded between September 28, 2009 and January 2, 2012
Foreclosure Notice Form PDF Word