I know that in Oregon the legislators are pushing forward 2 bills related to the mortgage industry (SB 628 and House Bill 3004). One bill seeks to prevent lenders from suing high-risk borrowers whom have already lost their homes. SB 628 would require lenders to "consider" modifying if requested to do so by the homeowner. I dont see either one of these making a difference really in the long run. The only bite I see to it, is that if the lenders dont "consider" a modification, the state could choose to delay the sale of the foreclosed home.
The goal of SB 628 is simple: To tell lenders that before they foreclose on a house, they stop and have a good faith conversation with the borrower.
"Connecticut, New York, New Jersey, Ohio and Maine have passed laws that require lenders to work with the borrower and a third-party mediator. Maryland and North Carolina have laws that force lenders to make a "good faith effort" to modify a mortgage"
SB 628 requires that any Notice of Default sent to Oregon homeowners outline the following:
- Information about the possibility of loan modification;
- A “Modification Request Form (Form);” and
- Contact information for referral to a Housing Counselor.