Summary of Oregon's Foreclosure Laws

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If you are facing foreclosure in Oregon, it’s important to understand some of the basics, including:

  • the most common type of foreclosure procedure (judicial v. nonjudicial) used in Oregon
  • how much time you have to respond
  • your rights and protections in the process, and
  • what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).

Below we have outlined some of the most important features of Oregon foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.

Topic

State Rule

Most common type of foreclosure process

Probably nonjudicial. In the past, most foreclosures in Oregon were nonjudicial. In 2012, lenders switched to judicial foreclosures for various reasons that are no longer applicable. Lenders are now using the nonjudicial process again. 

Time to respond

Foreclosing party must record a notice of default in the county records and serve a notice of sale on borrower 120 days before the sale, either by personal service or mail, along with a “danger” notice that warns of the impending foreclosure mailed on or before the date the notice of sale is served or mailed. Notice of sale must also be published in a newspaper for four weeks.

Reinstatement of loan before sale

Available up to five days before sale. The law limits the amount borrower can be charged in attorney or trustee fees.

Redemption after sale

Not available after a nonjudicial foreclosure

Special protections for foreclosures involving high-cost mortgages

None

Special state protections for service members

Violations of the Servicemembers Civil Relief Act are an unlawful practice under Oregon law. Or. Rev. Stat. § 646.605, 646.608(LLL). The lender can't initiate a suit to foreclose a mortgage if the land covered by the mortgage is owned by a service member called into active service during war. Or. Rev. Stat. § 408.440.

Deficiency judgments

Not allowed after a nonjudicial foreclosure or a judicial foreclosure of a residential trust deed

Cash exempted in bankruptcy

$400 ($800 for married couples), plus up to $7,500 of wages deposited into a bank account ($15,000 for married couples)

Notice to leave after house is sold

New owner entitled to possession ten days after the sale; after that, the purchaser may start an eviction action to remove former owner from the home.

Foreclosure statutes

Or. Rev. Stat. §§ 86.726 to 86.815, 88.010 to 88.106

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