How Foreclosure Works in Oregon

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.

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.

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.

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.