FORECLOSURE DEFENSE NEWS AND INFORMATION - Oregon

In a report dated March 16, 2009, National Public Radio reported that Oregon ranks among ten states with the highest rates of foreclosure in the United States. As increasing numbers of Oregonians lose their jobs, they also lose their ability to make their monthly mortgage payments. The trend is ominous.

The foreclosure crisis affects virtually every community in Oregon - from rural to urban. Rural Josephine County tops the counties in Oregon in terms of foreclosure rates - with one in every 254 housing units being subject to foreclosure filings. Portland has seen a decline in housing prices of approximately 15 percent over the past two years, as well as the doubling of unemployment rates.

Recently, KATU News reported on the increasing tendency of Oregon residents to fight foreclosure. Among other things, Oregonians, like residents of other states, are filing legal documents demanding that banks produce the mortgage notes upon which their foreclosures are based. Because so many loans have been sold, purchased and assigned (often on multiple occasions), many financial institutions are unable to provide such basic documents proving that they own the subject loans. Other possibilities for homeowners in distress include requesting that their loan servicers approve short sales or loan modifications.

In a foreclosure battle of epic proportions, Natache D. Rinegard-Guirma proved that a modest homeowner can defeat one of our nation's biggest banks, armed with nothing more than perseverance and self-determination.

In 2010, Ms. Rinegard-Guirma learned that a foreclosure sale was scheduled for her home. With adversaries like Bank of America and Mortgage Electronic Registrations Systems (MERS), many people would simply throw their hands up in defeat - others might elect to seek out the assistance of counsel. Ms. Rinegard-Guirma did neither, opting instead to bring her David vs. Goliath melee to Federal District Court.

Acting on her own behalf and without the assistance of legal representation, Ms. Rinegard-Guirma argued that the Defendants, which included Bank of America, MERS, and Litton Loan Servicing LP, "conspired and colluded" to take her home by means of an illegal foreclosure. Ms. Rinegard-Guirma sought a preliminary injunction enjoining the foreclosure of her home.

Her argument centered on the fact that Defendants lacked standing to bring a foreclosure action because MERS, an artificial creation of mortgage lenders which acts as a common agent for purposes of recording, could not have effected a proper transfer of the mortgage since it never held the underlying note.

The Federal District Court found Ms. Rinegard-Guirma arguments persuasive, ultimately granting her a preliminary injunction and enjoining defendants from proceeding with the foreclosure sale. The court further held that Ms. Rinegard-Guirma's claims had a "likelihood of success on the merits."

Ms. Rinegard-Guirma success should be viewed with admiration by all of us. She has proven that even against the richest and most powerful institutions of this nation, our court system can still be relied upon to doll out equity and justice.