An Oregon foreclosure mediation program has undeniably helped many debtors find a way to stay in their homes. The program provides Oregonians with a chance to meet with lenders in order to find ways avoid a foreclosure. The latest data from the Oregon Department of Justice show that since the program’s inception, more than 1,700 Oregonians have used it to reach agreements with their banks.
The bad news is that because mortgage lenders are obligated to participate in mediation but not required actually reach a resolution with the borrower, over 1800 of the conferences have done nothing to ward off foreclosure. Even more borrower have chosen to not participate in the program at all. Most of them probably realized that the program was unlikely to work.
The reality is that Chapter 13 Bankruptcy is the one tool that will almost always enable an Oregon homeowner to stop the foreclosure process in its tracks. Once the Chapter 13 is filed, the homeowner is given the chance to pay off the mortgage arrears over a three to five year period interest free.
Contract our offices if you have any questions at all about how Chapter 13 Bankruptcy might enable you to keep your house.