State of Oregon Foreclosure Law Summary

Which law provision governs foreclosure in Oregon?

The laws which govern Oregon foreclosures are found in Chapter 86 Oregon Revised Statutes (Mortgages, Trust Deeds) and Chapter 88 (Foreclosure of Mortgages and other liens).

What happens during Judicial Foreclosure in Oregon?

It involves filing a law suite to obtain a court order. This is done when no power of sale is present in mortgage/deed. If borrower needs to redeem a property, he has to pay the purchase price with interest, foreclosure costs, the purchaser's expenses in operating and maintaining the property within 180 days after the date of sale. The borrower needs to file a notice within period of 2-30 days after the sale to redeem the property.

What happens during Non-Judicial Foreclosure in Oregon?

Non-judicial foreclosure is conducted only when power of sale clause exists in deed of trust/mortgage. This clause allows borrower pre-authorizes the sale of property to pay off the balance loan in the incidence of their default. In such cases power is given to lender to sell the property by himself or his representative who generally referred as trustee. Guidelines for such procedure are mentioned under “Guidelines for power of sale foreclosure”.

Guidelines for power of sale foreclosure

If the deed of trust/mortgage contains a power of sale clause with specified time, place and terms of sale, then it should be followed.

Otherwise foreclosure is carries out as follows:
First a notice of default should be recorded in the county where property is located and same notice should be sent to the borrower at least 120 days before the sale. Also notice should be published once a week for four consecutive weeks, and last notice should appear 20 days before the sale. The notice should have description of the property, recording information on the trust deed, details of default, the sum owning on the loan, the lender’s intention to sell and date/time/place of the sale. The sale can be postponed for up to 180 days, but the notice should be given 20 days before the schedule sale date.

This is legal information; it should not be treated as legal advice.