Legislature in Oregon Focuses on Foreclosures and Mulling Over New Rules for Lenders
The Legislature in Oregon is focusing on foreclosures and mulling over new rules for lenders. It is hoped that it will help victims like Ginny Real who sanguine about talks proceeding about her loan modification was taken aback when the bank said the documents has been misplaced. More shock was in store. Last June she got a hand-delivered note saying that the house where she had been living for the last two dozen years had been sold and that she had 10 days grace period within which to pack up and exit.
The legislators are thinking of many steps for helping the troubled house owners like her. Although they agree that the house owners are in trouble they are not united about remedial measures and this means tough going in the Legislature this current year.
Speaking to a committee of the state Senate Real said good hard working people like her husband and herself were exposed to this and wished there were laws running that would have “stopped this from happening”. Apart from her there were six other house owners describing their sad experiences while trying to modify loans and save their homes from foreclosure.
There are two bills likely to be put up for vote soon.
One of them, Senate Bill 1552, would mandate lenders to meet house owners face to face in the presence of a professional mediators before any foreclosure action could be taken. The ultimate goal was avoidance of foreclosure. The bill has been drafted along similar laws prevailing inWashington,NevadaandCalifornia.
Lawyer representing Northwest Credit Union Association said, “It’s the policy and the practice of lenders to work with borrowers as much as possible. No one – the lender, the borrower – wants a foreclosure to happen. Everyone loses what that happens”.
Another bill – Senate Bill 1564, would make illegal the “dual track’ system wherein lenders foreclose while simultaneously continuing with modification. In some instances the house owners would get the right to claim damages by filing lawsuit under Unlawful Trade Practices Act.
The supporters of the bill think that if the bills became law the lenders would be compelled to cooperate with the borrowers to make terms of mortgage affordable and foreclosures would also slow down.
The opponents do not want introduction of more rules on the financial entities – specifically the smaller banks. It would ultimately lead to them being swallowed by the mega ones.
