I own a house in Oregon, but I'm in default on my mortgage payments. The home just went into foreclosure. Is it true that homeowners in Oregon can "redeem" after the foreclosure sale? Does this mean that I can buy my house back if I lose it to foreclosure?
Yes. You may get the chance to repurchase or “redeem” your home after the foreclosure sale in Oregon, but only under certain circumstances.
Whether you can redeem your home depends on whether the foreclosure was judicial (where the lender files a lawsuit in court to foreclose your home) or nonjudicial (where the foreclosure takes place without court supervision). In a nutshell, here are the rules:
- Judicial foreclosure. If the foreclosure was judicial, you can redeem your home within 180 days after the foreclosure sale (Or. Rev. Stat. § 88.106, § 18.964).
- Nonjudicial foreclosure. If the foreclosure was nonjudicial, you cannot redeem your home after the foreclosure sale (Or. Rev. Stat. § 86.797(1)).
In Oregon, both judicial and nonjudicial foreclosures are common. (To learn more about foreclosure laws and procedures in Oregon, visit Nolo’s Oregon Foreclosure Law Center.)
How Much You'll Have to Pay to Get Your Home Back
In order to redeem (if you get the opportunity), you must pay the sheriff who conducted the sale:
- the full price the purchaser (the person or entity who bought the home at the foreclosure sale) paid at the sale
- interest at a rate of 9% per year from the sale date
- the amount of any taxes the purchaser has paid on the property (plus interest)
- any amounts the purchaser spent on necessary maintenance (plus interest), and
- any amounts that the purchaser paid on superior liens (plus interest). (Or. Rev. Stat. § 18.966).
How to Redeem the Home
If you want to redeem, you must serve the purchaser with a redemption notice personally or by first class mail.
Notice requirements. The notice must specify:
- a date and approximate time when you will make payment to the sheriff
- the redemption amount you calculate to be due
- the manner in which you calculated the redemption amount, and
- your mailing address (Or. Rev. Stat. § 18.970).
To find out how much the purchaser has spent on taxes, maintenance, and prior liens, you’ll need to request an accounting in the notice (Or. Rev. Stat. § 18.970)
The redemption date must be a weekday that is not a legal holiday and the time must be between the hours of 9 a.m. and 4 p.m.
When to serve the notice. You must serve the notice no more than 30 days before the payment date specified in the redemption notice, and:
- not less than 14 days before the payment date specified in the notice (if service is by first class mail), or
- not less than seven days before the payment date specified in the notice (if personal service is made).
If you don’t redeem the home within the 180-day time frame (called the redemption period), your right to redeem expires. After that, you won’t have another opportunity to get your house back. (Learn more general information about the right of redemption.)
Since the redemption process in Oregon is rather complicated, it is recommended that you seek the assistance of an Oregon foreclosure or real estate attorney to help you if you want to redeem the home.
Options Before the Foreclosure Sale to Save Your Home
If you want to keep your house, it is generally better to take action before the foreclosure sale. (This is especially true if your foreclosure is nonjudicial where you don’t get the opportunity to redeem after the sale). For example, you could:
- pay off the past-due amounts to reinstate (catch up on) the loan, or
- try to work out an agreement with the lender that will allow you to keep the property, such as a mortgage modification, forbearance agreement, or repayment plan.
Finding Oregon’s Redemption Laws
To find the statutes that discuss your right to redeem the home after a foreclosure in Oregon, go to Volume 1, Chapter 18 and Volume 2, Chapter 86 and Chapter 88 of the Oregon Revised Statutes.