SALEM - The Senate took action this evening on a bill that will help homeowners facing foreclosure. After overcoming significant hurdles in the House, Senate Bill 1552B passed with amendments and was sent back to the Senate for concurrence where Sen. Chip Shields (D-Portland) carried the concurrence motion to 27-3 approval.

"This amended bill will give struggling homeowners a fair and honest chance to save their homes." said Sen. Chip Shields (D-Portland). "Most people just want the chance to try to work out an arrangement with their loan servicer. This bill will help them do that."

The final version of SB 1552B addresses major issues of the foreclosure crisis by giving distressed homeowners tools and protections that will allow them to stay in their homes. Included are provisions that would require banks to negotiate with borrowers and work with a mediator to explore alternatives to foreclosure.  It  will prohibit the "dual track" process in which banks appear to work on loan modifications while simultaneously proceeding with foreclosure. Additionally, the bill includes oversight and a right to damages if banks violate the dual-tracking provisions.

Oregon has continued to suffer from the foreclosure crisis. Despite a nearly 40 percent drop in foreclosure filings last year, news reports indicate that foreclosures are expected to increase in 2012 as lenders process foreclosures that had been caught in legal uncertainty.  Through the second quarter of 2011, 38,176 Oregon homes were in foreclosure or seriously delinquent, and one of eleven Oregon homeowners were in foreclosure or behind on their payments.  

The bill now goes to the governor for signature. 

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