I have almost 100 active cases in my role as housing counselor for homeowners seeking help with their financial hardship. Many of these cases are for Southern Oregon homeowners wanting to keep their home. Homeowners who have taken the time to investigate the options available to them, and homeowners who need help figuring out what their options are. Many of these homeowners applied for modification of their home loan. When I review the documentation we collect to verify their financial hardship, I see that many of these homeowners appear to be pretty darn good candidates for the mortgage modifications they are seeking. Chaos reigns in the servicers' back rooms. They are flooded with these request for modification and are grossly understaffed - and/or their staff is inexperienced and under-trained. Mistakes are common.
Oregon instituted Senate Bill 628 to help protect homeowners seeking modification. When a homeowner is facing foreclosure on their Oregon home and their servicer/investor has filed the Notice of Trustee Sale, notification must be sent with that Notice of Trustee Sale/foreclosure notice that the homeowner may request to be considered for modification. The homeowner needs to submit a complete up-to-date financial hardship package even if they have done so previously, a package usually consisting of:
- Request for Modification Notice included with foreclosure notice
- Financial Statement
- Complete Household Budget breaking down all income and expenses
- Income verification (paycheck stubs covering the past 2 months, Year-to-Date Profit & Loss Statement if self-employed, last 2 years federal tax returns signed/dated)
- Last two months bank statements (do NOT include retirement fund statements, even if they are asked for - they are not required for consideration for modification)
- Completed, signed, dated 4506-T for past 2 years tax returns
- Completed, signed, dated Dodd-Frank Certificate
- Documentation supporting hardship - i.e. medical bills, divorce decree/death certificate, letter explaining job loss/ reduced income (must have become re-employed for modification)
If an Oregon homeowner provides the above within 30 days of the Notice of Trustee Sale being filed, their servicer/investor MUST REVIEW THEIR MODIFICATION REQUEST WITHIN 45 DAYS!!! I suggest all homeowners seeking modification that appear eligible to file this notice and submit their financial hardship package via the instructions on the notice, even if they've applied repeatedly before - no matter where they are in the process for being considered. I also tell them to file a complaint with the Oregon Attorney General if this Notice pertaining to Senate Bill 628 is not included or if their servicer/investor do not respond in the required time frame.
If you are - or know of - a Southern Oregon Homeowner seeking assistance for a financial hardship, call ACCESS...(541)779-6691. This is a HUD certified housing counseling agency, and foreclosure interventions services provided by certified, educated professionals are free.
See you out there!
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