Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

The Five Largest Lenders In The State Have Indicated They Will Not Participate

Every time we hear that the banks do everything that they can to prevent foreclosure and find other solutions, we turn to the facts. And as John McClane said in Die Hard 2, “Just the fax, ma’am. Just the fax.”

Just up north in Oregon, private Oregon mortgage servicers have so far refused to participate in Oregon’s new foreclosure mediation program, declining even to respond to requests for mediation.

According to the state’s contractor who oversees the mediation program that 132 eligible homeowners applied for the program on the grounds that they are at risk of foreclosure. The law allows at-risk borrowers to request a meeting with their lender even before they’ve missed a payment.

However, none of the mortgage servicers responded to the requests within 15 days as required under the law.

We have heard that the five largest lenders in the state have indicated they will not participate in the mediation process “under any circumstances.”

Unfortunately The New Law Has Little Bite

Unfortunately the new law contains little consequence for non participants. In other words the banks will not suffer a penalty if they do not participate in mediation with “at-risk” borrowers. Once the borrower falls into the foreclosure process – provided the process goes through an out-of-court foreclosure – the lender could be barred from selling the home at auction if it doesn’t participate in mediation.

Not surprisingly, lenders have also stopped filing out-of-court foreclosures. More banks now take the slower and costlier court-supervised foreclosure route, which avoids the mediation program.

It will be interesting to see how things shake out in this process and see if the banks come around to play ball or not.

Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

Lenders Not Participating In New Oregon Foreclosure Mediation Program

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Filed under Banks, Foreclosure

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