Oregon Foreclosure Laws

Oregon foreclosure laws permit both judicial and non-judicial foreclosures. However, non-judicial trustee foreclosure sales are the typical foreclosure procedure in this state. The foreclosure process tin Oregon often takes approximately five months.

Pre-Foreclosure

The lender can start a judicial foreclosure process by recording a notice of default. The court declares a foreclosure, allowing the property to be scheduled for auction. The judicial foreclosure procedures is usually only used if the mortgage or deed of trust has no power of sale clause.

Most Oregon foreclosures are non-judicial because most mortgages in the state have a power of sale clause, which allows the lender to start foreclosure proceedings without filing a lawsuit if a debtor defaults. To start a non-judicial foreclosure, the lender must record a notice of default at least four months before the expected auction date. The notice is filed with the county recorder. The debtor must also be given a notice of default at least four months before the property auction.

Up to five days before the auction, the property is considered in pre-foreclosure. At this stage, the debtor can still avoid foreclosure by paying the default amount as well as any additional costs demanded by the lender.

The Foreclosure Auction in Oregon

For non-judicial foreclosures in Oregon, a notice of sale must be published in the local newspaper for four weeks before the auction, at least once a week. The final notice to appear in the newspaper must appear no less than twenty days before the day of the auction. If the sale must be postponed, it can be delayed for up to 180 days from its original date. If it is postponed for a longer period, the foreclosure process must be started anew.

The foreclosure auction is open to everyone but the trustee. The event usually takes place between 9 a.m. and 4 p.m. The winning bidder must pay the bid amount in cash at the auction. Within ten days of the foreclosure sale, ownership of the property is transferred to this winning bidder and the bidder can take possession of the real estate. Once the sale has taken place, the debtor loses the right of redemption.