Foreclosure Notice
Required by Senate Bill 628 (2009), modifying the provisions of House Bill 3630 (2008)
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. The trustee is required to 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.
Generally, 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.
The 2009 law (SB 628) added three provisions to this process:
1. Loan modification request and review
2. Meeting between the lender and homeowner to discuss a modification
3. Affidavit verifying compliance with the loan modification process filed with county recorder
Loan Modification Request
The 2009 law (SB 628) now also 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.
Effective dates
This current foreclosure notice and this special loan modification process are required from
September 28, 2009, to January 2, 2012. After that date, only the foreclosure notice is required.
The Division of Finance and Corporate Securities developed the foreclosure
notice that lenders must use. It is designed to be filled out electronically. The trustee must
complete all forms that are blank before sending it to the homeowner.
This revised form must be used for notices mailed on or after September 28,
2009. The fillable form in Word. (It can also be downloaded
as a PDF .)
