Oregon Process

 

Foreclosure Facts

Oregon foreclosures are conducted judicially and non-judicially, depending on circumstances, and typically take about five months. According to Oregon law, once the lender records a notice of default, provided no power-of-sale is included in the mortgage, foreclosure proceeds through the court system. After the court declares a foreclosure, the property is immediately put up for sale.

It is common to have a power of sale clause written into the mortgage, which allows the lender to sell the property out of court to recover the balance of the loan in the event of default. At least four months before the property is scheduled for sale, the lender records a notice of default with the county recorder, and delivers the notice of default to the borrower.

The borrower can stop the foreclosure up to five days before the sale by satisfying all past debt owed plus expenses.

Notice of Sale / Auction

For non-judicial foreclosures, the notice of sale must be published once a week in a local newspaper for four consecutive weeks before the sale, with the last notice published at least 20 days before the sale date.

The sale, between the hours of 9 a.m. and 4 p.m. at the location stated on the notice, is a public auction. Any individual, except the trustee, may present bids at auction. The property goes to the highest bidder, who must pay in full in cash on the date of the auction. The trustee transfers ownership of the property to the highest bidder within 10 days of the sale, after which the purchaser is also entitled to legal possession of the property.

Should the need arise, the sale may be postponed for up to 180 days from the original scheduled date without restarting the entire foreclosure process.

For foreclosures conducted non-judicially, the borrower has no rights of redemption following the foreclosure sale.