Oregon Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Yes
Security Instruments: Mortgage, Deed of Trust
Right of Redemption Period: 6 Months
Deficiency Judgments Allowed: Only with Judicial Foreclosure
Time Frame: 129-180 Days
Public Notice: Notice of Default
Oregon is considered to be a title theory state, which means that a property title will remain in trust until the loan is paid in full. In the state, a title can be secured by either a mortgage or a deed of trust. If the borrower defaults, lenders can utilize either the judicial or non-judicial foreclosure method.
The state allows borrowers six (6) months to reclaim their property after it has been sold by paying off the full amount of the default plus any other costs. The borrower must submit a notice to the sheriff in their county between two (2) to thirty (30) days in advance of the redemption. Lenders are also permitted to seek a deficiency judgment when a foreclosure is sold for less than what was owed on it.
Types of Foreclosures Allowed in Oregon
Judicial foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
The lender initiates the process by suing the borrower in the court where the property is located. If the court declares a foreclosure, then the property will be auctioned off to the highest bidder. With judicial foreclosures, borrowers have a right of redemption period for six (6) months after the sale date. The borrower must also file a notice no less than two (2) days and not more than thirty (30) days with the county sheriff.
Non-judicial foreclosure, which is also known as foreclosure by power of sale, allows for the property to be sold without court supervision. In order for non-judicial foreclosures in Oregon to be possible, the loan documents must contain a power of sale clause, which authorize the lender to sell the property in the event of default to be able to recover what is owed on the property.
There are two ways in which a non-judicial foreclosure in Oregon can proceed. If the power of sale clause states a specific time, place, and outlines terms of sale, then the lender must follow the procedure that is stated. If there is no specification, then the following guidelines must be followed:
1. A notice of default must be recorded in the county in which the defaulted property is located. The borrower must be served a copy of the notice at least one hundred and twenty (120) days before the sale date.
2. A copy of the notice must also be published in a local newspaper once a week for four (4) consecutive weeks. The final publication must be printed at least twenty (20) days before the sale.
3. The notice must contain information about the foreclosure, including a description of the property, the default, the time, date and location of the sale and other relevant details.
4. The borrower has the ability to pay off the defaulted loan at any time before the sale to stop foreclosure on their property.
5. If the borrower does not cure the debt, the sale will take place between 9am and 4 pm at the location specified on the notice. The property will be auctioned off to the highest bidder. Anyone aside from the trustee may bid on the property.
6. The sale may be postponed up to one hundred and eighty (180) days from the original sale date if a minimum of twenty (20) days notice is given.
7. Lenders do not have a right to seek a deficiency judgment in Oregon with this type of foreclosure method.
Working with a Foreclosure Lawyer in Oregon
The idea of losing one’s home is a devastating one, but a very real possibility with the current condition of the U.S. economy. Even if you have already received a notice of foreclosure, there is still a way to fight for your property. Speak to a leading foreclosure attorney in Oregon right away to discuss your options and file a case.
Foreclosure lawyers will work out a plan to present to your lender in lieu of foreclosure. The plan may include mortgage modification, refinancing or even a temporary halt in payments. Whatever the plan, rest assured that your foreclosure lawyer will do whatever it takes to prevent your home from being repossessed.
Regardless of your reason for defaulting, you have rights as a homeowner in Oregon. Contact an acclaimed team of foreclosure attorneys today to discuss your options and file a case.