Paul Clark
In this Blog we open the conversation with
economic loss caused by the current mortgage
crisis.
Oregon Foreclosure Law
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of
Trust, Mortgage
- Timeline: Typically 180 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes
In Oregon, lenders may
foreclose on deeds of trusts or mortgages in default
using either a judicial or non-judicial foreclosure
process.
Judicial Foreclosure
The judicial process of foreclosure, which involves
filing a lawsuit to obtain a court order to
foreclose, is used when no power of sale is present
in the mortgage or deed of trust. Generally, after
the court declares a foreclosure, your home will be
auctioned off to the highest bidder.
In this type of foreclosure, the borrower may redeem
the property by paying the purchase price, with
interest, the foreclosure costs and the purchaser's
expenses in operating and maintaining the property
within 180 days after the date of sale. The borrower
must file a notice no less than two (2) days and not
more than thirty (30) with the sheriff to redeem.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when
a power of sale clause exists in a mortgage or deed
of trust. A "power of sale" clause is the clause in
a deed of trust or mortgage, in which the borrower
pre-authorizes the sale of property to pay off the
balance on a loan in the event of the their default.
In deeds of trust or mortgages where a power of sale
exists, the power given to the lender to sell the
property may be executed by the lender or their
representative, typically referred to as the
trustee. Regulations for this type of foreclosure
process are outlined below in the "Power of Sale
Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a
power of sale clause and specifies the time,
place and terms of sale, then the specified
procedure must be followed. Otherwise, the
non-judicial power of sale foreclosure is
carried out as follows:
A notice of default must be recorded in
the county where the property is located and
the borrower and/or occupant of the property
must be served with a copy of the notice at
least 120 days before the scheduled
foreclosure sale date.
A copy of the notice must be published once
a week for four (4) successive weeks, with
the last notice being published at least
twenty (20) days prior to the foreclosure
sale.
Said notice must contain a property
description, recording information on the
trust deed, a description of the default,
the sum owing on the loan, the lender's
election to sell and the date, time and
place of sale.
The borrower may cure the default at any
time prior to foreclosure by paying all past
due amounts, plus costs.
The sale must be at auction to the
highest bidder for cash. Any person, except
the trustee, may bid at the sale, which take
place between 9:00 am and 4:00 pm at the
location stated in the notice of record.
The sale may be postponed for up to 180 days
from the original sale date if at least
twenty (20) days advance notice is given, by
mail, to the original recipients of the
notice.
A deficiency judgment cannot be obtained through
a non-judicial foreclosure, but may be pursued when
other foreclosure methods are used.
