FAQ’s

• Q: What is mediation?

  Mediation is a face-to-face meeting with your lender and a neutral third person “mediator” to discuss alternatives to foreclosure. You may have an attorney or a housing counselor represent you at mediation, or you can represent yourself. The mediator does not decide who is right or wrong.

• Q: Is there a fee to participate in the Mortgage Mediation Program?

  Your share of the mediation fee will be $200.00. Your lender must also pay a fee. If you are low income, you may qualify for a reduced fee. To download a fee waiver form, select Homeowner Application for Fee Waiver.

• Q: Why should I bother to mediate my mortgage problem?

  Mediation can help you avoid foreclosure by allowing you to negotiate an agreement with your lender to:

  • Allow you to make one or more payments late or skip payments ( “forbearance”);
  • Temporarily or permanently modify (change) your payments or other terms of the loan;
  • Allow you to transfer the property to your lender without foreclosure and forgive the debt (a “deed-in-lieu-of-foreclosure”);
  • Allow you to sell the property for less than what you owe (a “short sale”); or
  • Other assistance that allows you to avoid foreclosure.

  If you and your lender reach an agreement, your lender may be prohibited from selling the property unless you violate the terms of the agreement.

• Q: How do I request mediation?

  You should contact the Mediation Case Manager, which is the mediation service provider, within 10 days of receipt of your Notice of Right To Participate In Mediation With Mortgage Lender to schedule a date for mediation.

  You can contact the Mediation Case Manager by calling 855-658-6733.

• Q: Who are the mediators?

  Mediators are individuals who are trained in mediation and have completed a three-part training course for the foreclosure avoidance mediation program.

• Q: Will the mediator issue a decision in my case?

  No. All the mediator can do is help the parties look at the dispute more objectively, discuss options for a workout of the mortgage, listen to each side privately, and help the participants find a solution. A mediator makes no decision, judgment or recommendation on the outcome of the mortgage dispute.

• Q: Do I need a lawyer to participate in the Mortgage Foreclosure Mediation Program?

  No, you do not have to be represented by an attorney. You may have an attorney or a housing counselor represent you at mediation, or you can represent yourself. Visit the Counseling web page or download the  Foreclosure Resources file which provides a list of approved housing counseling and legal services agencies that provide free or low-cost assistance.

• Q: Do all borrowers who signed the mortgage need to attend the mediation session?

  Yes, all borrowers must be present at the mediation session. For example, if a husband and wife signed the mortgage, then both will need to be present for the mediation. If one party cannot attend, the borrower who is attending should bring a completed Power of Attorney form.

• Q: Is the mediation confidential?

  Yes. Oregon law requires that all mediation communications be kept strictly confidential. See ORS 36.220 to 36.238.

• Q: What do I bring to the mediation session?

  You must provide the documents listed below at least 15 days before the mediation. Your lender must provide information to you about your loan, including a complete payment history and proof that the lender owns your loan. You can download a complete homeowner’s packet at [website].

  a.    A completed Universal Intake Form

  b.    Pay stubs confirming your income for the most recent two full months

  c.    If self-employed, a profit and loss statement, if available

  d.    Bank statements for the most recent two full months

  e.    If relying on social security, disability, unemployment or other non-wage benefit income, a benefits statement or letter from the benefit provider showing the amount, frequency and duration of the benefit

  f.     A divorce decree or judgment or separation agreement, if the homeowner is relying on child support, alimony or maintenance payments

  g.    The homeowner’s most recent electric, heat, gas, or other utility bill

  h.    The homeowner’s most recent property tax statement or appraisal; and

  i.     The homeowner’s tax returns from the two most recent years

• Q: What else will I be required to do?

  Before mediation, you must meet with a qualified housing counselor who will assist you at no cost. The housing counselor will help you gather information and assess your options. You should make an appointment with a housing counselor as soon as possible. See the resource list for approved counselors near you.

• Q: Does your Trust Deed qualify for the FAMP?

  The Oregon Legislature defined applicable Trust Deeds in ORS 86.705 to be those trust deeds on property in which the Grantor, the Grantor’s spouse or the Grantor’s minor or dependent child occupies as a principal residence at the time a default that results in an action to foreclose the obligation secured by the trust deed first occurs. FAMP does not apply to Trust Deeds on property which is unoccupied at the time of default, is primarily rental or constitutes a “second” or “Vacation” residence.

• Q: Who is the Mediation Case Manager?

  The Mediation Case Manager (MCM) has been supporting large-scale mediation programs since 2004. MCM lends its experience with managing complex mediation programs and its flexible software system to provide quality program management.

  TThe Oregon Department of Justice has selected the Mediation Case Manager to manage the Oregon Foreclosure Avoidance Mediation program. The program brings borrowers and lenders together with a mediator to find a mutually agreeable resolution. For more information on the Mediation Case Manager, visit www.MediationCaseManager.com.