By Sharon Ko
MEDFORD, Ore. — A new law in effect Wednesday is giving leverage to homeowners at risk of foreclosure.
The Senate bill passed in March is going to provide two advantages. First, it’s stopping dual tracking – that’s where banks pursue foreclosures but at the same time negotiate loan modifications.
The second benefit it will provide is requiring lenders to send out notifications to homeowners to discuss foreclosure alternatives. If banks do not follow these rules, they will be fined $500 or face a foreclosure block later on.
The lender and homeowner will need a neutral negotiator to help mediate. ACCESS is a local agency that provides that service.