Oregon foreclosure allows for both the judicial (in court) and non-judicial (out-of-court) foreclosure processes, although most foreclosures are non-judicial in the state. In general, the foreclosure process takes about 5 months.
In an Oregon foreclosure, once the lender records a Notice of Default, (NOD), with the court, if no Power of Sale clause is included in the mortgage, then the foreclosure process proceeds through the court system. If not, there is a Power of Sale clause then the lender can move forward out of court. If the court declares a foreclosure, the property is scheduled for sale.
More commonly a Power of Sale clause is written into the mortgage. This clause allows the lender to sell the property out of court to recover the property so that they may recoup the balance of the loan in the event of default. The lender records an NOD with the county recorder a minimum of four months before the property is scheduled for sale. The lender also must deliver the NOD to the borrower at least four months before the sale date as well.
The borrower has the right to stop the foreclosure up to five days before the sale by paying all past due monies owed plus costs.
In an Oregon foreclosure, the borrower typically gets the right to:
- Pre-foreclosure notices
- apply for loss mitigation
- participate in a resolution conference also called foreclosure mediation
- receive certain foreclosure notices
- get current on the loan and stop the foreclosure sale
- receive special protections if the borrower or spouse is in the military
- pay off the loan to prevent a sale
- file for bankruptcy, and
- get any excess money after a foreclosure sale.
Notice of Sale & Auction
For non-judicial foreclosures, a Notice of Sale, (NOS), must be published once a week for four weeks in a local newspaper before the sale. The last notice is required to be published at least 20 days before the sale date.
The sale is between the hours of 9 a.m. and 4 p.m. on a regular business day, at the location stated on the notice. Typically, this is the county courthouse. Oregon foreclosure sales are public auctions. Anyone may present bids with the exception of the trustee. The property is awarded to the highest bidder. The high bidder must pay in full in cash by the end of the auction.
The trustee transfers ownership of the property to the highest bidder within 10 days of the sale. Once that has occurred, the purchaser is also entitled to possession of the property.
The sale is allowed to be postponed for up to 180 days from the original scheduled date without restarting the foreclosure process.
For foreclosures conducted out of court, the borrower cannot redeem the property once the sale has occurred.
than the loan amount.