Signed by Governor John Kitzhaber

Vote Smart's Synopsis:

Vote to pass a bill that requires lenders to enter into mediation with borrowers before foreclosure.

Highlights:

• Requires a lender seeking to foreclose on a residential mortgage to enter into mediation with the borrower to negotiate a foreclosure avoidance measure (Sec. 2).

• Defines a “foreclosure avoidance measure” as an agreement between a lender and a borrower that uses any of the following methods to modify a mortgage (Sec. 2):
• The lender defers or refrains from collecting 1 or more payments due on the mortgage;
• The lender modifies the terms of the mortgage;
• The lender accepts a deed in lieu of foreclosure from the borrower;
• The borrower conducts a short sale; or
• The lender provides the borrower with other assistance that enables the borrower to avoid foreclosure.

• Requires the lender and the borrower to share the cost of mediation, except that the borrower's portion of the cost may not exceed $200 (Sec. 2).

• Authorizes a mediator to waive the borrower's portion of a mediation fee (Sec. 2).

• Authorizes a borrower to opt-out of mediation with a lender after consulting a housing counselor (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that requires lenders to enter into mediation with borrowers before foreclosure.

Highlights:

• Requires a lender seeking to foreclose on a residential mortgage to enter into mediation with the borrower to negotiate a foreclosure avoidance measure (Sec. 2).

• Defines a “foreclosure avoidance measure” as an agreement between a lender and a borrower that uses any of the following methods to modify a mortgage (Sec. 2):
• The lender defers or refrains from collecting 1 or more payments due on the mortgage;
• The lender modifies the terms of the mortgage;
• The lender accepts a deed in lieu of foreclosure from the borrower;
• The borrower conducts a short sale; or
• The lender provides the borrower with other assistance that enables the borrower to avoid foreclosure.

• Requires the lender and the borrower to share the cost of mediation, except that the borrower's portion of the cost may not exceed $200 (Sec. 2).

• Authorizes a mediator to waive the borrower's portion of a mediation fee (Sec. 2).

• Authorizes a borrower to opt-out of mediation with a lender after consulting a housing counselor (Sec. 2).

Full Bill Text