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Oregon Foreclosure Law Summary
Quick Facts
- 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
In Oregon, lenders may foreclose on deeds of trusts or
mortgages in default using either a judicial or non-judicial
foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing
a lawsuit to obtain a court order to foreclose, is used
when no power of sale is present in the mortgage or deed
of trust. Generally, after the court declares a foreclosure,
your home will be auctioned off to the highest bidder.
In this type of foreclosure, the borrower may redeem
the property by paying the purchase price, with interest,
the foreclosure costs and the purchaser's expenses in
operating and maintaining the property within 180 days
after the date of sale. The borrower must file a notice
no less than two (2) days and not more than thirty (30)
with the sheriff to redeem.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when
a power of sale clause exists in a mortgage or deed of
trust. A "power of sale" clause is the clause
in a deed of trust or mortgage, in which the borrower
pre-authorizes the sale of property to pay off the balance
on a loan in the event of the their default. In deeds
of trust or mortgages where a power of sale exists, the
power given to the lender to sell the property may be
executed by the lender or their representative, typically
referred to as the trustee. Regulations for this type
of foreclosure process are outlined below in the "Power
of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of
sale clause and specifies the time, place and terms of
sale, then the specified procedure must be followed. Otherwise,
the non-judicial power of sale foreclosure is carried
out as follows:
- A notice of default must be recorded in the county
where the property is located and the borrower and/or
occupant of the property must be served with a copy
of the notice at least 120 days before the scheduled
foreclosure sale date.
- A copy of the notice must be published once a week
for four (4) successive weeks, with the last notice
being published at least twenty (20) days prior to the
foreclosure sale.
- Said notice must contain a property description, recording
information on the trust deed, a description of the
default, the sum owing on the loan, the lender's election
to sell and the date, time and place of sale.
- The borrower may cure the default at any time prior
to foreclosure by paying all past due amounts, plus
costs.
- The sale must be at auction to the highest bidder
for cash. Any person, except the trustee, may bid at
the sale, which take place between 9:00 am and 4:00
pm at the location stated in the notice of record.
- The sale may be postponed for up to 180 days from
the original sale date if at least twenty (20) days
advance notice is given, by mail, to the original recipients
of the notice.
A deficiency judgment cannot be obtained through a non-judicial
foreclosure, but may be pursued when other foreclosure
methods are used.
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