Foreclosure mediation in Oregon

How foreclosure mediation works in Oregon, step by step

1. Who it covers

   Before a notice of default or a foreclosure lawsuit

   It applies to residential trust deeds: four or fewer units where one is your principal residence. Lenders that started 30 or fewer Oregon residential foreclosures the year before can file a yearly exemption affidavit with the Attorney General, and Veterans Affairs loans under ORS 407.125 are exempt.

   ORS 86.726(1), (5); ORS 86.705

2. How it starts

   Lender request, or yours if none has been filed

   A covered lender must request a conference before it records a notice of default or sues. If it has not, you can request one yourself after a housing counselor certifies in writing that you are more than 30 days behind or have a hardship that may qualify you for help.

   ORS 86.726(1), (3)

3. Notice, fee and documents

   Notice within 10 days of the request; fee and papers within 25 days of the notice

   Mediation Case Manager mails a notice and schedules the conference within 75 days. Within 25 days you must pay your fee (no more than $200) and send proof of income, expenses, debts and your hardship. If you do not pay the fee, the conference is canceled and the lender gets a certificate to go ahead.

   ORS 86.729(1), (2), (5)(b); ORS 86.736(2)

4. What the lender must hand over

   Within 25 days after it gets your information

   The lender pays its own fee of up to $600 and must send the trust deed and note, your payment history, an itemized payoff and cure amount, its net present value inputs and results, its latest appraisal or price opinion, and any investor rule it says blocks a modification.

   ORS 86.729(4)

5. Who attends

   At the conference

   You must attend in person or by video or phone. The lender or its agent must attend with complete authority to agree to a foreclosure avoidance measure, or have someone with that authority on the line. You may bring a lawyer, a housing counselor, or both.

   ORS 86.732(1)

6. What can come out of it

   At or after the conference

   If you agree on a modification or other measure, both sides sign a written document with the terms. The facilitator can pause the conference once on their own, and again only if both sides agree, then files a report on who attended, whether the lender had full authority and what was agreed.

   ORS 86.732(2) to (4)

7. If the lender does not take part properly, or there is no deal

   Before any foreclosure moves forward

   A lender that skips the conference or does not bring full authority gets no certificate of compliance, and a trustee cannot record a notice of default without one. If you do not reach a deal, the lender gets its certificate, which lasts one year, and can start foreclosure.

   ORS 86.736; ORS 86.752(4)

The program in Oregon

Common questions in Oregon