Oregon Foreclosure Process and Laws

 


Quick Facts About the Oregon Foreclosure Process

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 180 days

Right of Redemption: Yes

Deficiency Judgments Allowed: Yes

Lenders in Oregon can use a judicial or non-judicial process to foreclose mortgages in default.

Judicial Foreclosure
When no power of sale is present in a mortgage in default, the judicial process involves filing a lawsuit to obtain a court order to foreclose. When this happens, the borrower’s property can then be sold at an auction to the highest bidder.

The borrower may redeem his property by paying the purchase price, as well as interest, foreclosure costs and expenses at maintaining the property within 180 days of the sale. A notice to redeem must be filed with the sheriff no less than two days and no more than 30 days.

Non-Judicial Foreclosure
In a non-judicial foreclosure, a power of sale clause is present in a mortgage, this means that the borrower has pre-authorized the sale of the property in the event of their default. The power to sell the property can be carried out by the lender or a representative by following the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If a power of sale clause contains the time, place and other terms of the sale, then these must be followed. If there are no specified terms, the non-judicial foreclosure process is carried out as follows:

  1. A notice of default must be recorded in the county where the property is located, and a copy should also be sent to the borrower at least 120 days before the foreclosure sale.
  2. The notice of sale must be published in the county newspaper once a week for four consecutive weeks, with the last ad being published at least 20 days before the sale.
  3. The notice must contain a description of the property, description of the default, time and place of the sale and other pertinent information.
  4. The borrower may cure his defaults by paying all of the debts that he owes plus costs.
  5. The sale must take place between 9am-4pm on the location specified in the notice, and anyone can bid on the sale except the trustee.
  6. A sale can be postponed up to 180 days as long as a new notice is sent to the original recipients of the notice at least 20 days before the original schedule of sale.

A deficiency judgement cannot be filed in the non-judicial foreclosure process, but it may be filed during other foreclosure processes.

Foreclosure Avoidance Counseling

HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.

If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.

Portland Field Office

400 S.W. Sixth Avenue, Suite 700

Portland, OR 97204-1632
Phone: (971) 222-2600

Fax: (971) 222-0357
TTY: (971) 222-2625

Jurisdiction: State of Oregon

Doug Carlson
Acting Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.,
Monday through Friday