- 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.
