Mortgage Foreclosure Laws in Oregon
- Once you fall behind on your mortgage in Oregon, the lender will record a notice of default, which starts the foreclosure process. If a power of sale is not included in the mortgage, the foreclosure must be carried out through the court. A power of sale is the clause that allows the lender to sell the property in the event of your default. The lender must record the notice of default 120 days before the sale is scheduled.
- The notice of sale must be published in the local newspaper once a week for four consecutive weeks before the sale. Oregon foreclosure law requires the last notice to be published at least 20 days before the sale occurs. The lender is also required to deliver a notice of sale to the owner. Through a judicial foreclosure, the homeowner can request mediation to prevent foreclosure under Senate Bill 628. In a mediation session, the homeowner, lender and unaffiliated third-party meet to explore possible solutions to avoid foreclosure. A foreclosure sale can be postponed for up to 180 days without restarting the process. The homeowner has five days before the sale to stop the foreclosure by paying the delinquent balance.
- The foreclosure sale is a public auction held between the hours of 9 a.m. and 4 p.m. at the location specified on the notice of sale. All people, except the trustee, are allowed to bid on the property. The highest bidder takes ownership. The entire bid amount must be paid in cash before the end of the auction. Within 10 days of the sale, the trustee transfers ownership to the winning bidder. The new owner is also allowed to take ownership.
- If the foreclosure was judicial, the borrower has a right to redeem the home. In Oregon, the redemption period is 180 days after the sale date. The homeowner must pay the winning bid price, along with interest and foreclosure costs. The homeowner will also need to pay the purchaser's expenses for operating and maintaining the home during the redemption period. The intent to redeem must be filed at least two days before the redemption period expires, but no more than 20 days before expiration.
