Oregon Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Usually 180 days
- Right of Redemption1: Yes
- Deficiency Judgments2 Allowed: Yes
Lenders in the state of Oregon may foreclose on deeds of trusts or mortgages in default using either a non-judicial or judicial foreclosure process.
Judicial Foreclosure
A judicial process of foreclosure requires that the lender file a lawsuit and attain a court order to foreclose on a particular property. This type of process is generally used when no power of sale is present in the mortgage or deed of trust. A power of sale is a clause found in a deed of trust or mortgage that authorizes the sale or transfer of land as outlined by the terms of that clause.
A lender may sue for deficiency if the foreclosure is conducted judicially. Under a this foreclosure procedure, the borrower can redeem the property within one hundred and eighty (180) days after sale by paying the purchase price plus nine (9) percent plus the foreclosure purchaser's expenses in operating and maintaining the property.
Non-Judicial Foreclosure
If a power of sale clause exists in the deed of trust or mortgage document, a non-judicial process of foreclosure is used. This allows the lender to sell the property and pay off the balance of the loan in the event the homeowner defaults. The power to sell may be completed by the lender or their representative in situations where a power of sale exists. The procedure for this type of foreclosure process is explained in the "Power of Sale Foreclosure Procedure" listed below.
Power of Sale Foreclosure Procedure
If the deed of trust or mortgage has a power of sale clause and it details the time, place and terms of sale, then the outlined procedure must be followed. However, if the power of sale clause, does not clarify the time, place and terms of sale, then a foreclosure sale will be conducted as follows:
- The notice of default is recorded in the county where the property is located. The borrower is served with a copy of the notice at least one hundred and twenty (120) days prior to the foreclosure sale.
- The notice is also published once a week for four (4) consecutive weeks. The last publication can not be less than twenty (20) days before the foreclosure sale.
- The borrower may cure by paying all past due amounts, plus costs, prior to foreclosure. The sale is by public auction to the highest bidder paying cash. Any person may bid at the sale (except the trustee).
- The sale may be postponed for up to one hundred and eighty (180) days from the original sale date if at least twenty (20) days advance notice is given to the original recipients of the notice.
Lenders can not sue for a deficiency judgment under the non-judicial foreclosure procedure.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
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