For homeowners facing foreclosure in Oregon, the following is a summary of the state’s foreclosure laws:
Foreclosures in Oregon can be judicial, meaning the bank must file a lawsuit in court in order to foreclose.
Foreclosures in Oregon can also be nonjudicial but a court must confirm the sale.
Before the bank can initiate the foreclosure process in Oregon, either nonjudicially or judicially, it must allow the homeowner to have a mediation meeting, or resolution conference, with the bank and a neutral mediator to find ways to avoid a foreclosure.
The bank will send a notice about the resolution conference to the homeowner. To participate in the resolution conference, the homeowner must agree to the meeting, meet with a housing counselor beforehand and pay a fee. The conference will take place within 75 days of the notice.
Oregon law requires three foreclosure notices:
- To initiate the foreclosure process, the trustee records a notice of default in the county records.
- After recording the notice of default, and at least 120 days before the sale, the trustee will serve a notice of sale to the homeowner.
- The trustee will also serve the notice of sale to the homeowner at least 120 days before the foreclosure sale. The trustee will try to personally serve the homeowner and, if the first attempt fails, they will post the notice in a visible place on the property. The trustee will make a second attempt to serve the notice to the homeowner and, if they fail again, they will post the notice in a visible place on the property again. The trustee will make a third attempt and, if they fail again, they will mail a copy of the notice to the homeowner.
- In addition, the trustee will publish the notice of sale in a local newspaper.
- On or before the date the trustee serves or send the notice of sale, the trustee will send a danger notice to the homeowner, which warns the homeowner that they are in danger of losing the property to foreclosure and includes information about foreclosure alternatives.
Oregon Foreclosure Protections
Oregon foreclosure law provides protections in accordance with the federal Service Members Civil Relief Act.
Oregon law also states that the bank can’t initiate a foreclosure lawsuit if the property belongs to a service member called into active service during war.
Reinstatement and Redemption
Oregon homeowners can reinstate up to five days before the foreclosure sale, however the homeowner cannot redeem the home after a nonjuducial foreclosure.
In Oregon, deficiency judgments are not allowed in nonjudicial foreclosures or after a judicial foreclosure of a residential trust deed.
In Oregon, the buyer can take possession of the home ten days after the foreclosure sale. If the foreclosed homeowners don’t leave, the buyer can start an eviction process to remove them from the home. For information regarding how to avoid foreclosure in Oregon, visit HUD.gov.