- 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.
More information on Oregon foreclosure laws.
