Governor signs foreclosure bill

Gov. Ted Kulongoski has signed a consumer protection bill aimed at reducing the number of home foreclosures in Oregon.

Kulongonski signed the bill today at a ceremony in North Portland.

The legislation, passed in the closing hours of the 2009 Legislature, requires lenders to notify homeowners facing foreclosure of their right to hold a meeting with the lender.

It also would force lenders to make a "good faith effort" to determine whether the borrower is eligible for a loan modification.

Consumer activists who pushed for the legislation say borrowers who seek help from lenders don't always get an adequate response.

Oregon's foreclosure problems aren't as severe as those in California, Nevada or Florida. But Oregon's foreclosure rates are rising, in part because of the state's high unemployment level.

— The Associated Press

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