Reaffirming on a first mortgage puts the terms of the old contract back into effect. This can mean for example, that your creditor can send you statements and report your payments to the credit bureaus.

In Oregon, if you fall behind on your first mortgage payments and your home is foreclosed, you cannot be held responsible for any deficiency. A deficiency exists if you owe more money for the property than your creditor was able to resell it for. It is important to understand that this protection only applies to first mortgages. If you sign a reaffirmation on your second mortgage (if applicable) and your home is foreclosed, you can be held responsible for a deficiency.

If you do not sign this agreement, your creditor may allow you to keep the property for as long as you make payments. However, your creditor may not send you statements or report your payments to the credit bureau. You must send your payments on or before the due date even if you do not receive a statement.