Oregon Laws

Oregon foreclosures can be either judicial or non-judicial, depending on whether the mortgage agreement in question contains a Power of Sale clause allowing the lender to pursue foreclosure without the supervision of the court. In the absence of such a clause, a judicial foreclosure must be used. This begins when the lender files a suit against the homeowner in default. The court will hold a hearing on the matter, and if the court rules against the homeowner, the homeowner's property will be sold at public auction to retrieve the amount of the delinquent loan. Power of Sale clauses are very common in Oregon, so judicial foreclosures are not often needed.

To begin non-judicial foreclosures, the lenders files a Notice of Default with the county register and provides it to the homeowner as well. A sale can then be scheduled for no less than four months in the future. The homeowner can avoid a sale by paying off the default amount owed to the lender at any time before the sale begins.

To properly advertise the foreclosure, a Notice of Sale must be published in a local weekly newspaper for four weeks leading up until the day of the sale. The sale occurs on the foreclosed property and takes place between 9 a.m. and 4 p.m. The sale can be postponed for up to 180 days, after which point a new sale must be registered.

On the day of the sale, a court official or trustee of the lender auctions off the property to the highest bidder. Once that person provides full cash payment of their bid, they are to be transferred ownership within ten days. Rights to redemption are not allowed under Oregon foreclosure law, but may be provided by individual courts in judicial foreclosures.

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