Any other states have this? Has it helped?

[JoannaOregon]

New law to help homeowners
Senate Bill 628, passed by the 2009 Oregon Legislature, 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. Starting Sept. 28, foreclosure notices that are sent to homeowners who are late on their mortgage payments include new information about how to meet with their lender and how to request a loan modification. If the borrower requests it, lenders must meet with borrowers or show that they evaluated the borrower for a loan modification before foreclosing on the home. Oregonians who are seriously behind on their mortgage payments should watch their mail for the new foreclosure notice. Once they receive the notice, they should immediately take the following steps: Call their lender to set up a meeting to discuss a loan modification. Fill out the loan modification request form provided in the notice. Call 1-800-SAFENET and ask to be referred to a nonprofit foreclosure counselor. The coun­selor can help homeowners request a loan modification. Homeowners should act fast – they have 30 days from the date of the foreclosure notice to request a loan modification. For more information, homeowners can call the Department of Consumer and Business Services, Division of Finance and Corporate Securities, at 503-947-7854 or call 1-800-SAFENET to be referred to a foreclosure counselor. Foreclosure notice required by SB 628

[Moe Bedard]

Oregon is the first state that I have seen do this. Interesting and I wonder how they plan to monitor this.

[davephx]

All the effort just to get more people into trials when the problem isn't the trials its getting permanent mods.

Nevada seems to have a better solution, mandatory negotiations required.

[JoannaOregon]

I was thinking the same thing Moe... How would they monitor and then enforce it????

I will do some searching....

[JoannaOregon]

Oppps... It does say this...

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.

[Social Apocalypse]

Washington just passed similar legislation:
I just got this from the DFI Website. It is changes being made to Washington State Law. WOW it looks VERY exciting with regard to foreclosure and produce the note!! Maybe I am reading it wrong?

ESB 5810 (chapter 292, Laws of 2009)
Deeds of Trust Foreclosure

Effective Date: July 26, 2009

Current law does not require a residential mortgage lender to contact its borrower prior to commencing a non-judicial deed of trust foreclosure, nor does current state law require proof of the existence of the original promissory note secured by the deed of trust prior to a trustee commencing foreclosure. Current law does not require that the successful bidder at a deed of trust sale (either the lender or a third party bidder) provide any notice or time-period after foreclosure before commencing an eviction of an existing tenant. In addition, appellate case law has held that the failure to enjoin a deed of trust sale prior to completion of the foreclosure bars the borrower from bringing any claims against the lender or trustee.

This bill makes several temporary and permanent changes to the Deed of Trust Act (Ch. 61.24 RCW) that are designed to address the ill-effects of the present mortgage crisis and the perceived inequity of Washington appellate case law:

Lender contacting the borrower before starting foreclosure process.
The bill requires that the first notice of default, which commences a non-judicial deed of trust foreclosure, may not commence against a borrower on an owner-occupied residential mortgage loan made between January 1, 2003, and December 31, 2007, unless the lender has contacted the borrower and certifies having done so in the notice of default. This contact requirement is temporary and expires December 31, 2012. Deeds of trust securing commercial loans, guaranties, and seller-financed sales are exempt from this temporary requirement.

Proof of promissory note prior to trustee commencing foreclosure. Before the statutory notice of sale may be recorded, which is the first act of the appointed trustee in the non-judicial foreclosure process, the trustee must have proof that the purported lender is the actual holder of the promissory note secured by the deed of trust and possesses the original note with authority to commence the deed of trust sale. If the original promissory note is lost, the lender may provide a copy of the note and a notarized statement declaring that the original note has been lost.

Sixty-day notice to tenants after foreclosure of tenant-occupied residence. The bill requires that tenants in possession of non-owner occupied residential property at time of deed of trust foreclosure shall be given a 60-day notice to vacate. The new owner (landlord) by foreclosure still has the option of negotiating a new lease with the tenant or offering to pay the tenant to vacate sooner.

Survival of certain claims against the lender or trustee. The failure of a borrower (beneficiary) or lender (grantor) to enjoin a deed of trust sale under the Deed of Trust Act does not act as a waiver of the claim for actual damages for common law fraud or misrepresentation, conduct in violation of Title 19 RCW, and a failure of the trustee to materially comply with Deed of Trust Act. The claim for actual damages must be brought within two (2) years of the foreclosure’s completion.