The Oregon Foreclosure Avoidance Program partners with many state agencies and nonprofit organizations to provide free and low-cost resources and help to Oregonians struggling as a result of foreclosure.
Oregon's Foreclosure Avoidance Program lends a structured process for:
- Communicating with the lender
- Submitting financial documentation to the lender
- Working with a certified foreclosure counselor
- Meeting with the lender virtually or in person with a facilitator at a neutral location
This program is available for these types of homeowners:
- Homeowners who have received a "Notice of Resolution Conference" from their lender
- Homeowners who are behind on their loan obligation
- Homeowners in financial hardship and wish to request a resolution conference with their lender
Please note: If you are delinquent on your mortgage loan and receive correspondence in the mail with an envelope that looks like the below image and an enclosed letter asking for payment, it is a legitimate state-sponsored program.
Free loan modification and foreclosure counseling
Please read the materials and reach out to one of OHCS' homeownership centers listed below to talk to a certified foreclosure counselor who can help you with documents and setting up a resolution conference. Pay the fee to Mediation Case Manager (information enclosed in envelope), and they will assign you to a counselor.
Low-cost legal representation
If you need legal help, the Oregon State Bar provides free information and other resources through Oregon Law Help for veterans and those on low to moderate incomes. The following are some of the services they provide:
- Oregon State Bar Lawyer Referral Service: The Lawyer Referral Service refers all Oregonians to attorneys who have agreed to a $35 initial consultation fee. Fees thereafter are as negotiated.
- Modest Means Program: Low- to moderate-income Oregonians may qualify for this program offering reduced-rate services.
- Military Assistance Program: Veterans may qualify for up to two hours of free assistance through the Military Assistance Panel.
For more information on these services, visit the Oregon Law Help website or call 503-684-3763; toll-free in Oregon at 800-452-7636.
Other foreclosure assistance resources
Frequently
asked questions
In 2012, the Oregon Legislature passed a law requiring lenders to meet with homeowners at the start of
the nonjudicial foreclosure process. In 2013, the Legislature expanded the program so most
homeowners will have an opportunity to meet with their lenders before any foreclosure begins.
There are just four simple steps to participate: Pay a fee, meet with a housing counselor, submit your
documents, and show up. It’s really that easy.
If you follow the four simple steps, you will get:
- Free advice and assistance from a housing counselor.
- The ability to submit documents to your lender through a secure online portal.
- Information about your loan, including an itemized statement of what you owe, a payment history,
and the name of the entity that owns your loan.
- A meeting with a representative of your lender who has complete authority to negotiate
and commit to a foreclosure avoidance measure.
- A chance to avoid foreclosure before the lender begins that process.
Even if you are not able to save your home, you will be able to talk to your lender about deeding the
home back, selling the property for less than you owe, or moving out voluntarily in exchange for a small
payment to help you relocate.
Call Mediation Case Manager (MCM) at 855-658-6733 for help at any time. MCM manages
the program for the state and can help you with setting up your online account, scheduling, payments,
submitting documents, using the online portal, and more. Information is also available on the program
website at www.ForeclosureMediationOR.org.
Call a housing counselor as soon as possible to begin planning for the resolution conference. The housing
counselor will advise you about options to avoid foreclosure, help assemble the best possible proposal for
your lender, and prepare you for the meeting. If you want help negotiating with your lender, a housing
counselor will attend the resolution conference with you. There is no cost to you for working with a
housing counselor. Please refer to the above list of approved housing counseling agencies
in Oregon.
If you are low income, all but $50 of your fee may be waived. The reduced fee must be paid by the
deadline on the notice. Call MCM at 855-658-6733 for help and more information.
The fee deadline is set by law and cannot be changed. If you don’t pay your fee on time, MCM will cancel
the resolution conference and issue your lender a Certificate of Compliance. Your lender may foreclose
without further delay. Call MCM at 855-658-6733 for help and more information.
If you don’t submit all of your documents on time, MCM will not cancel the resolution conference. But
your lender may not give you information about your loan and you will be much less likely to reach an
agreement to avoid foreclosure. You should meet with a housing counselor as soon as possible for help
gathering the right documents for your lender and uploading them to the online portal.
Within 25 days after you submit your documents, your lender must give you the following information
about your loan:
- A copy of the Promissory Note and Deed of Trust
- The name and address of the owner of your loan
- A record of your payment history for the last 12 months, or since you were last current on the
loan, a statement of what you owe (itemized by principal, interest, fees, and other charges) and
the amount you would need to pay to cure the default
- Input and output values of any Net Present Value test used to evaluate your eligibility
- The most recent appraisal or price opinion the lender used to determine the value of the
property.
- The portion of any servicing or other agreement that limits modification of your loan and a
statement of what effort was made to get the limitation waived
- A description of any additional documents needed to evaluate your eligibility for a
foreclosure avoidance measure
A resolution conference is an informal meeting with your lender to negotiate a foreclosure avoidance
measure. A neutral person, called a “facilitator,” will lead the discussion. The facilitator is trained in
mediation and basic foreclosure issues.
If you are not available on the date MCM sets, you may be able to reschedule the resolution conference if
your lender agrees or there is “good cause” for moving the date. You should contact MCM as soon as
possible to request a new date.
You may bring an attorney, a housing counselor, or both to the resolution conference, but you are not required to do so. If you cannot afford an attorney but would like one, free or low-cost legal assistance may be available. Please see the "Low-cost legal representation" portion of this webpage for more information.
No. Oregon law requires your lender to send a representative with complete authority to negotiate and
commit to a foreclosure avoidance measure, but your lender is not required to modify your loan if you are
not eligible. Your housing counselor can help you determine which options you may be eligible for so that
you can put together the best possible proposal to your lender.
Notify MCM as soon as possible if you need any special accommodations or a translator at the resolution
conference.
The Oregon Foreclosure Avoidance Program was created by law and is overseen by the Oregon
Department of Justice. Mediation Case Manager is the sole entity appointed by the Department of Justice
to manage the day-to-day operations of the program. More information about this program is available
on the Department of Justice website at www.doj.state.or.us.
Unfortunately, there are many scammers claiming to offer help to struggling homeowners. If you believe
you have been a victim of a scam or have questions about a particular business, including Mediation Case
Manager, call the Department of Justice’s Consumer Protection Hotline at 877-877-9392.