Some ways to forestall foreclosure on a home

Home: Best bet is to level with your lender

W hen it comes to mortgages, Oregon has some of the lowest late-payment and foreclosure rates in the country. But that doesn't mean people aren't on the verge of losing homes here, too.

In one recent case, a local couple saved their home literally on the steps of the courthouse, handing sale papers to a sheriff minutes before the property was to be auctioned in a foreclosure sale. On the advice of a counselor from Acorn Housing Corp., the couple swallowed their pride and sold the house to a relative, who agreed to rent it back to them.

"I got a great big hug out of that one," says Acorn counselor Clark Tierney.

Elsewhere, especially in the South and Midwest, the stories aren't ending as happily for other homeowners, who are turning their homes over to banks and mortgage lenders in growing numbers, according to a report released last month by the Mortgage Bankers Association.

During the fourth quarter, for example, 10.64 percent of all the mortgages in Mississippi were past due and 2.14 percent were in foreclosure. Other states with high late-payment and foreclosure rates include Louisiana, Indiana and Michigan. The average national percentage of mortgages that are at least 30 days past due is 4.95 percent.

But the wolf is not even in the neighborhood, let alone at the door, in Hawaii, Oregon and Washington. Past-due and foreclosure rates are much lower -- one-fifth Mississippi's rate. Robust real estate appreciation and, perhaps, less affinity for risky subprime mortgage products in the first place, have kept foreclosure rates down in the Pacific Northwest.

Nevertheless, foreclosure prevention counselors such as Acorn's Kevin Sheehan see growing tension as clients struggle to make mortgage payments that are increasing faster than their incomes. Clients with adjustable rate mortgages are dealing with the downside of those products as rising interest rates "reset" and monthly payments skyrocket.

A lot of things can be done to forestall foreclosure, though. Here are suggestions, from Acorn and another education and counseling agency, the Portland Housing Center:

Open that mail

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