Foreclosure mediation program takes effect

Foreclosure mediation program takes effect

Oregon homeowners who default or fall behind on mortgage payments now have the right to meet in person with their loan servicer and a mediator.

The program, approved by the Legislature in March, takes aim at the high foreclosure rate in the wake of the recession. In mediation, homeowners can try to convince their lender they can make payments on a modified loan, or at least avoid foreclosure by selling the home or just turning over the keys.

Mediation programs elsewhere have struggled with low participation, ill-informed homeowners and uncooperative lenders. But those involved in implementing Oregon's program, and observers elsewhere, say it's positioned to succeed where others failed.


{biztweet}oregon foreclosure{/biztweet}