Q: What are a bank's obligations for forbearance or loan modifications in Oregon?

A: I would suggest calling Hope Del Carlo at elemental.law. She is on top of all the foreclosure stuff in Oregon.

A: When facing financial hardship, your rights under Oregon law include several key protections. Federal mortgage servicing laws require your loan servicer to contact you about loss mitigation options no later than 36 days after a missed payment and again within 36 days after each subsequent missed payment. This gives you opportunities to explore alternatives before foreclosure begins.

Before initiating foreclosure, your bank must generally wait until your mortgage is more than 120 days delinquent, giving you time to learn about and apply for foreclosure alternatives. Oregon law uniquely requires that in most cases, lenders must offer you the opportunity to participate in a resolution conference with a neutral mediator to explore options for avoiding foreclosure. During this meeting, you can discuss possibilities such as loan modifications, forbearance agreements, or other alternatives.

Your reinstatement rights are particularly strong in Oregon. You have the right to reinstate your loan by paying the past-due amount plus fees at any time up to five days before a scheduled foreclosure sale. If you've applied to Oregon's Homeowner Assistance Fund program while experiencing financial hardship, your servicer must suspend foreclosure activities for up to 60 days while your application is being processed. Remember that reaching out to your bank early and documenting all communication increases your chances of finding a workable solution.