Foreclosure mediation sees uptick

Central Oregon homeowners slowly enrolling in program

By Elon Glucklich / The Bulletin

Published: September 27. 2013 4:00AM PST

Foreclosure resources

• To find out more about Oregon’s foreclosure mediation program, visit www.doj.state.or.us/consumer/pages/foreclosure_mediation.aspx. To set up an appointment with a local mediation coach, contact HomeSource of NeighborImpact at 541-323-6567
• For other foreclosure programs, visit http://oregonhomeownersupport.gov

The first version of Oregon’s foreclosure mediation program helped only a small handful of homeowners.

The revamped version, launched in early August, shows some signs of improvement.

Officials with NeighborImpact, the Central Oregon nonprofit handling local foreclosure mediation cases, say one Deschutes County homeowner has a face-to-face meeting scheduled with his or her lender in October. Two other cases are pending and could be scheduled in the coming weeks.

Those aren’t big numbers by any stretch, said Lynne McConnell, associate director of NeighborImpact’s HomeSource division. But they’re an improvement from the initial mediation program, which lenders bypassed almost entirely after it became law in July 2012.

Between July 1, 2012, and June 30, NeighborImpact handled just two mediation cases.

“There are a lot more possibilities this year than last year,” McConnell said.

The new law requires lenders to file a mediation request before foreclosing. Besides the one scheduled session and the two pending cases, lenders have initiated 36 other mediation requests in Central Oregon.

Lenders pretty much bypassed the first mediation program, which only applied to nonjudicial foreclosures. They chose to file foreclosure cases in local circuit courts rather than sit down with homeowners.

The retooled mediation program closed that loophole, and lenders are participating now. More than 670 mediation requests have come in across the state since Aug. 4, according to Oregon Department of Justice figures, more than double the number that came in during the 13 months prior.

Homeowners going through mediation have to gather documents like tax returns and bank statements, said Shelley Nelson, a NeighborImpact default-intervention coordinator who helps local homeowners prepare for mediation.

There’s also a $175 participation fee for the homeowners, and several fees for lenders totaling $525, which help the state run the program.

McConnell said it’s possible the fee for homeowners could have people thinking the program is a scam when they get notices about it in the mail.

She said anyone with questions or concerns should contact NeighborImpact.

“We don’t charge fees to meet with clients,” she said. “They’re welcome to come in. We’re doing more one-on-one meetings with (mediation) coaches and clients.”

— Reporter: 541-617-7820