Avoiding Foreclosure Given the bleak economic news lately, it is hard to pick up a newspaper or watch the evening news without developing a feeling of hopelessness about our country’s current credit woes. However, if the credit crisis comes knocking on your door, here are some useful tips that can keep you from becoming just another foreclosure statistic: • Contact your lender as soon as you know you might miss a payment or otherwise have difficulty meeting the terms of your loan. • Be patient but persistent when dealing with your lender and don’t give up after your first call. • Keep notes of who you speak with and when. • You may want to speak with a federally-approved loan counselor (www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm). • Consult an attorney. • If you are faced with foreclosure, ask your lender to postpone the date of the foreclosure sale to allow you additional time to obtain a loan modification. • Another option to avoid or delay foreclosure is to request that the lender produce the original trust deed as proof of ownership of the loan. • If foreclosure appears inevitable, suggest a so-called “deed in lieu of foreclosure” to your lender, whereby you sign the deed to the property over to the lender without going through a formal foreclosure process. • You should consult an accountant, prior to entering into any loan modification, including a deed in lieu of foreclosure, as the terms of the modification may have tax implications. • Consider filing for bankruptcy. A so-called “Chapter 13” bankruptcy shields individuals from unsecured creditors, such credit card companies. Although the court has fewer options with mortgages, as they are secured debts, filing for bankruptcy often spurs lenders to negotiate loan modifications. • Make sure to consult with a bankruptcy attorney before filing for bankruptcy. • Finally, if you get a loan modification, be sure to get the terms of any loan modification in writing. For additional tips on how to avoid foreclosure visit www.hud.gov/foreclosure.
Oregon’s foreclosure process is explained in greater depth at www.cbs.state.or.us/dfcs/ml/foreclosure.html, while Washington’s process is explained at http://www.dfi.wa.gov/consumers/homeownership/. Look for the full article in the June 2009 edition of Home Building News, published by the Home Builders Association of Metropolitan Portland. |
Construction & Design Team
The Construction and Design Team at Dunn Carney represents owners, developers, design professionals, general contractors, subcontractors, suppliers and sureties in all phases of private and public construction projects. Combining their legal knowledge with specialized knowledge about the construction industry, attorneys practicing in this area provide sound legal and practical advice to clients to help them achieve their business goals. Team members include:
Laura Althouse
Ken Antell
Jon Bennett
Dave Buono
Brian Cable
John Chambers
Jay Chock
Susan Glen
Damon Henrie
Tim Hering
Jim Hillas
Bill Joseph
Eric Kekel
Gil Parker
David Zehntbauer MAY 2009
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