OSPIRG BLOG

Oregon's foreclosure rate is getting worse. More and more Oregonians are in foreclosure - in fact the rate has doubled in the past year in the Portland area according to a new report.

Foreclosures hurt the families that lose their homes, but it also hurts the community at large. In part due to this, a new report ranks Oregon as one of the top 10 at-risk states for a state budget meltdown.

While lenders are being encouraged to do loan modifications for homeowners in trouble via the HAMP Act, it's not working in part because there are still greater incentives for lenders to foreclose.

This past year, OSPIRG supported SB 628 in Oregon which does several things to try to get banks to offer loan modifications to homeowners. As of the beginning of October, it requires lenders to include a notification with a foreclosure notice that the homeowner has the right to try get a loan modification, and it also provides homeowners with detailed information on the process and where to get help.

It also requires the lender to schedule a meeting (in person or on the phone) to discuss loan modification if the homeowner requests it.

However, the new law fell short of what we feel is necessary to get lenders to come to the table to offer real modifications. We are hearing stories about people getting modification offers that are $600 higher than what their original loan is. We are hearing stories about people who are not receiving the notice of their rights, or getting it 2 weeks after they received the foreclosure notice.

We want to hear YOUR story. If you are facing foreclosure, especially if you received notice since the beginning of October, we want to hear if your lender is negotiating with you in good faith. We want to know if they provided you with info about your rights. We want to know if they are taking your case seriously, or if they seem to be more interested in finding a way to get your home from you.

Visit our webpage we have set up to tell us your story. We won't share any of your information with anyone without your consent, but we do hope you will be willing to talk to your legislator and the local press about the need to improve the laws to prevent foreclosures in Oregon. We will help you communicate with those who have the power to change the system.

Together, we can make a difference to keep Oregonians in their homes.