Question 1

Is Oregon a judicial or non-judicial foreclosure state?

Accepted Answer

Both. Oregon allows judicial foreclosure, where a complaint is filed in circuit court, and nonjudicial foreclosure of a trust deed "by advertisement and sale," which happens outside the court system. In a nonjudicial foreclosure the homeowner receives a Danger Notice, a Notice of Default and/or a Notice of Sale, and a homeowner who disputes the right to foreclose must file a lawsuit to challenge the sale.

Question 2

What notice is required before a foreclosure sale in Oregon?

Accepted Answer

For a nonjudicial foreclosure of a residential trust deed, the lender generally must first request a resolution conference with the homeowner (see mediation_program). A notice of default electing to sell must be recorded in the county records. At least 120 days before the sale, a notice of sale must be served or mailed (first-class and certified mail) to the grantor and others with a recorded interest, and served on an occupant of the property. A separate "You are in danger of losing your property" notice must be sent to the homeowner by first-class and certified mail on or before the date the notice of sale is served or mailed. The notice of sale must also be published in a newspaper of general circulation in the county once a week for four successive weeks, with the last publication more than 20 days before the sale.

Question 3

How long does foreclosure take in Oregon?

Accepted Answer

The statute requires that the notice of sale be served or mailed, and served on occupants, at least 120 days before the trustee's sale, and that the last newspaper publication be more than 20 days before the sale. Oregon Housing and Community Services says nonjudicial foreclosure auctions typically occur between 120 and 180 days from the first notice date.

Question 4

Can you stop a foreclosure by catching up on payments in Oregon?

Accepted Answer

In a nonjudicial foreclosure, the homeowner (or a successor, or a junior lienholder) may cure the default at any time up to five days before the date last set for the sale. For missed payments, this means paying the entire amount then due (not the principal that would not be due without the default), plus the lender's actual costs and trustee's and attorney fees. For a residential trust deed, trustee's and attorney fees together are limited to $1,000 or the amount actually charged, whichever is less.

Question 5

Is there a right of redemption after foreclosure in Oregon?

Accepted Answer

After a nonjudicial trustee's sale, a person whose interest was foreclosed may not redeem the property. After a court-ordered (execution) sale, the judgment debtor generally may redeem within 180 days after the sale, and lien claimants within 60 days.

Question 6

Can the lender come after you for the rest of the loan after foreclosure in Oregon?

Accepted Answer

Generally no for homes. Except as allowed in ORS 86.797(4), a lender may not sue for a deficiency after a trustee's sale, or after a judicial foreclosure of a residential trust deed, and a judgment foreclosing a residential trust deed may not include a money award for the debt against the borrower.

Question 7

Does Oregon have a foreclosure mediation program?

Accepted Answer

Yes. Under Oregon's Foreclosure Avoidance Program, a lender that intends to foreclose a residential trust deed must generally first request a resolution conference with the homeowner, before filing a notice of default or a foreclosure suit. Lenders that started 30 or fewer residential foreclosures in the prior calendar year can claim an exemption by filing an affidavit with the Attorney General. If the lender does not request a conference, the homeowner may request one before a notice of default is filed, after getting a written certification from a housing counselor that the homeowner is more than 30 days in default or has a qualifying financial hardship.

Question 8

What happens to tenants when a rental home is foreclosed in Oregon?

Accepted Answer

If a foreclosed home includes a rental unit occupied under a bona fide tenancy, the buyer at the trustee's sale must go through the eviction process and may file only after serving a written termination notice: at least 60 days for a fixed-term lease, or at least 30 days for a month-to-month or week-to-week tenancy, or for a fixed-term lease when the buyer will live in the unit as a primary residence. The buyer must also give tenants a written notice about the sale and their rights.

Question 9

Can an HOA foreclose on your home in Oregon?

Accepted Answer

Yes. A homeowners association has a lien on a lot for unpaid assessments (including interest, late charges, attorney fees and costs). The lien is ahead of the homestead exemption but behind tax liens and a first mortgage or trust deed of record. The association must record a notice of claim of lien before suing to foreclose, and the foreclosure follows the procedure for construction liens (a court proceeding). The lien may be continued for up to six years from the date the assessment is due.

Question 10

What must a home seller disclose in Oregon?

Accepted Answer

Yes, unless an exclusion applies. A covered seller must deliver the statutory "Seller's Property Disclosure Statement" to each buyer who makes a written offer. Unless the buyer waived it in writing, the buyer has five business days after delivery to revoke the offer, and if the seller refuses to provide the form, the buyer may revoke the offer any time before closing.

Question 11

How do you get your home back after a tax sale in Oregon?

Accepted Answer

Property foreclosed for unpaid property taxes and sold to the county is held by the county for two years from the date of the foreclosure judgment unless redeemed sooner. During those two years, anyone who had an interest in the property on the judgment date (or their heirs), or a lienholder of record, may redeem by paying the full amount under the judgment with interest, plus a 5% penalty and a fee.

Question 12

Where can homeowners get free foreclosure help in Oregon?

Accepted Answer

Oregon Housing and Community Services (OHCS) runs the Oregon Foreclosure Avoidance Program and directs homeowners to free certified housing counselors and its Oregon Homeowner Help website. OHCS can be reached at 800-453-5511.

Judicial or non-judicial	Both. Oregon allows judicial foreclosure, where a complaint is filed in circuit court, and nonjudicial foreclosure of a trust deed "by advertisement and sale," which happens outside the court system. In a nonjudicial foreclosure the homeowner receives a Danger Notice, a Notice of Default and/or a Notice of Sale, and a homeowner who disputes the right to foreclose must file a lawsuit to challenge the sale. Source: ORS 86.752; Oregon Housing and Community Services, Oregon Foreclosure Process
Required notices	For a nonjudicial foreclosure of a residential trust deed, the lender generally must first request a resolution conference with the homeowner (see mediation_program). A notice of default electing to sell must be recorded in the county records. At least 120 days before the sale, a notice of sale must be served or mailed (first-class and certified mail) to the grantor and others with a recorded interest, and served on an occupant of the property. A separate "You are in danger of losing your property" notice must be sent to the homeowner by first-class and certified mail on or before the date the notice of sale is served or mailed. The notice of sale must also be published in a newspaper of general circulation in the county once a week for four successive weeks, with the last publication more than 20 days before the sale. Source: ORS 86.726, 86.752, 86.756, 86.764, 86.774
Time frames set by law	The statute requires that the notice of sale be served or mailed, and served on occupants, at least 120 days before the trustee's sale, and that the last newspaper publication be more than 20 days before the sale. Oregon Housing and Community Services says nonjudicial foreclosure auctions typically occur between 120 and 180 days from the first notice date. Source: ORS 86.764(1), 86.774; Oregon Housing and Community Services, Oregon Foreclosure Process
Right to catch up (reinstate)	In a nonjudicial foreclosure, the homeowner (or a successor, or a junior lienholder) may cure the default at any time up to five days before the date last set for the sale. For missed payments, this means paying the entire amount then due (not the principal that would not be due without the default), plus the lender's actual costs and trustee's and attorney fees. For a residential trust deed, trustee's and attorney fees together are limited to $1,000 or the amount actually charged, whichever is less. Source: ORS 86.778(1)
Foreclosure mediation	Yes. Under Oregon's Foreclosure Avoidance Program, a lender that intends to foreclose a residential trust deed must generally first request a resolution conference with the homeowner, before filing a notice of default or a foreclosure suit. Lenders that started 30 or fewer residential foreclosures in the prior calendar year can claim an exemption by filing an affidavit with the Attorney General. If the lender does not request a conference, the homeowner may request one before a notice of default is filed, after getting a written certification from a housing counselor that the homeowner is more than 30 days in default or has a qualifying financial hardship. Program page (Oregon Housing and Community Services): https://www.oregon.gov/ohcs/homeownership/pages/foreclosure-avoidance.aspx Source: ORS 86.726

Redemption after the sale	After a nonjudicial trustee's sale, a person whose interest was foreclosed may not redeem the property. After a court-ordered (execution) sale, the judgment debtor generally may redeem within 180 days after the sale, and lien claimants within 60 days. Source: ORS 86.797(1); ORS 18.964
Deficiency judgments	Generally no for homes. Except as allowed in ORS 86.797(4), a lender may not sue for a deficiency after a trustee's sale, or after a judicial foreclosure of a residential trust deed, and a judgment foreclosing a residential trust deed may not include a money award for the debt against the borrower. Source: ORS 86.797(2)
Tenants in a foreclosed home	If a foreclosed home includes a rental unit occupied under a bona fide tenancy, the buyer at the trustee's sale must go through the eviction process and may file only after serving a written termination notice: at least 60 days for a fixed-term lease, or at least 30 days for a month-to-month or week-to-week tenancy, or for a fixed-term lease when the buyer will live in the unit as a primary residence. The buyer must also give tenants a written notice about the sale and their rights. Source: ORS 86.782(6), (9)

HOA liens and foreclosure	Yes. A homeowners association has a lien on a lot for unpaid assessments (including interest, late charges, attorney fees and costs). The lien is ahead of the homestead exemption but behind tax liens and a first mortgage or trust deed of record. The association must record a notice of claim of lien before suing to foreclose, and the foreclosure follows the procedure for construction liens (a court proceeding). The lien may be continued for up to six years from the date the assessment is due. Source: ORS 94.709
Property tax sales	Property foreclosed for unpaid property taxes and sold to the county is held by the county for two years from the date of the foreclosure judgment unless redeemed sooner. During those two years, anyone who had an interest in the property on the judgment date (or their heirs), or a lienholder of record, may redeem by paying the full amount under the judgment with interest, plus a 5% penalty and a fee. Source: ORS 312.120
Seller disclosure	Yes, unless an exclusion applies. A covered seller must deliver the statutory "Seller's Property Disclosure Statement" to each buyer who makes a written offer. Unless the buyer waived it in writing, the buyer has five business days after delivery to revoke the offer, and if the seller refuses to provide the form, the buyer may revoke the offer any time before closing. Source: ORS 105.464, 105.465, 105.475

Oregon Foreclosure Laws: Process, Timeline and Your Rights

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After the sale

HOAs, taxes and selling

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Foreclosure & Homeowner Law FAQ

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