Helping People Since 1984
Open Door HousingWorks is a non-profit, HUD Certified Comprehensive Housing Counseling Agency.

Open Monday - Friday
9:00 a.m. - 5:00 p.m.

34420 SW Tualatin Valley Highway
Hillsboro, OR 97123
Phone 503.640.6689
Fax 503.640-9374
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Foreclosure Prevention Education
Open Door HousingWorks is committed to working with you to identify solutions and find innovative ways to address your particular situation. We'll work with you and your lender to find the right solution. Depending on your situation there may be several options available, which could include, but no limited to:

  1. Loan Modification
  2. Forebearance Plans
  3. Short Sale
  4. Reverse Mortgage (Age 62 and older Only)
  5. Refinance
  6. Repayment Plan
  7. Deed-in-Lieu of Foreclosure
  8. And Many More Options

Loan Modification
A mortgage loan modification is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower. The modification is excepted at lenders discretion. Mortgages are modified to the benefit of the borrower in one or more of the following ways:

  • Reduction in interest rate, or a change from a adjustable to a fixed rate, or in how the adjustable rate is computed
  • Reduction in principal
  • Reduction in late fees or other penalties
  • Lengthening of the loan term
  • Capping the monthly payment to a percentage of household income
Loan modifications are a popular option to help a homeowner avoid foreclosure. The lender is motivated to offer better terms to the borrower because of the expectation that the borrower will be able to afford a lower payment.

Forbearance Plans
Forbearance is a special agreement between the lender and the borrower to delay a foreclosure. Loan borrowers sometimes have problems making payments. This may cause the lender to start the foreclosure process. To avoid foreclosure, the lender and the borrower can make an agreement called "forbearance". According to this agreement, the lender delays his right to exercise foreclosure if the borrower can catch up to his payment schedule in a certain time. Forbearance is usually for temporary financial problems. If the borrower has more serious problems, for example if it is a variable-rate mortgage and the interest rate becomes unaffordable for the borrower, then forbearance is usually not a solution.

Short Sale
A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's loss mitigation or workout department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation.

Reverse Mortgage
Reverse mortgages enable homeowners, aged 62 and older, to convert their home equity into cash – without having to sell their home or make monthly repayments as long as they live in them. But while these loans can help older homeowners maintain their economic independence, they can also be expensive and complicated, and less costly alternatives may be available. <read more about reverse mortgages>

Learn More
To learn more, request a foreclosure prevention counseling appointment with one of our Loss Mitigation Counselors. <request appointment>

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