Oregon foreclosure law

Lenders in Oregon can foreclose on both mortgages and deeds of trust and may use either a judicial or non-judicial process. The process used depends on the contents of the contract. A typical Oregon foreclosure lasts about 180, or around nine months.

Judicial foreclosure
The judicial foreclosure process is used when the contract does not include a Power of Sale clause, which would otherwise allow the lender to foreclose outside of court. In an Oregon judicial foreclosure, the lender files a lawsuit against the borrower, and if the court confirms the default, the foreclosure is declared and the home is sold via public auction.

Judicial foreclosures give the borrower a 180-day right of redemption. This means that during the said period, he or she can regain possession of the home by paying the foreclosure sale price plus other costs, including interest, maintenance, and foreclosure fees. To do this, the borrower must file an intention to redeem with the county sheriff anywhere from two to 30 days after the sale.

Non-judicial foreclosure
If a Power of Sale exists in the mortgage, the lender can follow a non-judicial foreclosure process. The Power of Sale clause basically states that the borrower has authorized the lender to sell off the property as payment in the event of default. This authority can be practiced by the lender himself, or executed by a legal representative called the trustee.

The terms stated in the clause are usually followed throughout the foreclosure. If the clause does not provide sufficient terms, the foreclosure is carried out as follows:

The lender files a Notice of Default at the county office where the home is located. A copy of the notice is then sent to the borrower no less than 120 days before the sale date. The notice must contain the following information:

-a description of the property
-an account of the default
-the total amount owed
-details on the recording of the deed
-a statement of the lender’s intention to foreclose
-the time, date, and place of the foreclosure sale

The notice is also published in a newspaper with general circulation in the county, at least once a week for four consecutive weeks. The last ad should appear no less than 20 days before the sale date.

Any time before the sale date, the borrower can cure the default and stop foreclosure by paying the delinquent amount, plus attorney’s fees and other related costs. Otherwise, the home is sold for cash to the highest bidder, in an auction held between 9am and 4pm in the property’s county. The sale can also be delayed for up to 180 days, as long as the original participants are notified at least 20 days in advance.

Lenders who foreclose in a non-judicial process cannot seek deficiency judgments. This means that they can’t sue the borrower for any balance not covered by the foreclosure sale, even if the balance is larger than the sale price.

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