In Oregon, most mortgage loans give a grace period of 10-15 days before you’ll incur late charges. If you miss a few mortgage payments, the servicer will likely begin to send you letters and call you to try to collect and/or discuss foreclosure alternatives.
When you default on mortgage payments for more than 120 days, the foreclosure process begins.
In most cases, once your home has gone through the foreclosure process, you will be evicted from your home. The mortgage lender will then sell the home through a local real estate agent or liquidation auction. Remember — in Oregon, there’s no option for a post-sale property redemption after a foreclosure sale.
The consequences of foreclosure on your record include:
- 150+ point hit to your credit score
- Difficulty getting a mortgage in the future
- Debt that will take years to overcome
- Last resort of declaring bankruptcy
- Loss of your home with nothing to show for it
What to do during the 120-day foreclosure period
If you’re unable to pay your mortgage and will be unable to pay it over the next few months and beyond, call your lender immediately. Let them know about your situation and start a discussion about “loss mitigation.”
Loss mitigation is the process where borrowers and their servicer work together to prevent a foreclosure. Loss mitigation options include:
- Loan modifications
- Forbearance agreements
- Repayment plans
- Short sales
- Deeds in lieu of foreclosure
Thinking about a short sale?
A short sale is when your home’s value has declined and you owe more on your mortgage payments than what your home is worth. With this type of sale, your house is sold for a price that is less than the amount still owed on the mortgage.
If your servicer has agreed to a short sale, consider this as a good option. The financial consequences of a short sale are less severe than those of a foreclosure.
Columbia Redevelopment has experience working with homeowners and lenders to buy short sale properties. Contact us to learn more and avoid foreclosure.
What if you’ve already passed the 120-day foreclosure period?
In Oregon, before a lender can foreclose a residential deed of trust, it must first offer you the opportunity to have a face-to-face mediation meeting. This meeting is referred to as a “resolution conference” and involves a neutral mediator. The goal of this meeting is to explore options to avoid a foreclosure. However, there is a fee for this meeting.
If you’ve exhausted all your options or are unable to come to a resolution agreement, the lender will move forward on foreclosing your home. Keep in mind that in Oregon, you have the option of reinstating your property at any time prior to 5 days before its sale.
“Reinstating” is when a borrower pays the overdue amount, plus fees and costs, to bring the loan current and stop a foreclosure.
How to reinstate your mortgage in Portland and avoid foreclosure
If you’re unable to pay your mortgage and have exhausted your loss mitigation options, give us a call at (503) 406-9874 to learn how we can buy your house fast for cash so you can avoid foreclosure.
If the fair market value of your home is greater than what you owe on your mortgage, you can sell your home to us for cash and use the money to pay back your mortgage and move on with your life.
We’ll work fast to help you avoid foreclosure. We can make you an offer in as little as 24 hours and close on your home in 2-3 days.
What about the Oregon Foreclosure Moratorium?
House Bill 2009, otherwise known as the Oregon Foreclosure Moratorium, provides relief for homeowners who are struggling to make their mortgage payments thanks to loss of income due to COVID-19. The moratorium allows homeowners to make an agreement with their mortgage lenders to temporarily halt or reduce mortgage payments.
The moratorium has been extended multiple times but won’t last forever. Click here to learn the latest information on when this moratorium will end.
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If you can’t pay your mortgage, talk to Columbia Redevelopment
At Columbia Redevelopment, we’ve purchased many foreclosed homes over the years. We are passionate about giving homeowners the ability to pay off their mortgage in full, including all past due payments and penalties.
A few benefits of selling a home for cash to Columbia Redevelopment include:
- Cash offer within 24 hours of us visiting your home
- The transaction can close in 2-3 days, helping you avoid foreclosure quickly
- We will deposit $10,000 of earnest money into your account, releasing the funds after we’ve reviewed and approved the preliminary title report
- Sell your home as-is without any inspections or any repairs needed
- No real estate fees or commission you need to pay
Contact us today for your free, no obligation offer.