State Foreclosure Laws

Summary:

Judicial Foreclosure

1. If the security instrument does not contain a power of sale clause, the lender must pursue the judicial foreclosure procedure and sue the defaulted borrower in court and obtain a declaration of foreclosure.  At that point, the property may be sold at auction.
   
   
2. The borrower, however, has the right to redeem the property within 180 days after the sale. The borrower must file a notice of intent to redeem with the sheriff no sooner than two days and no later than 30 days after the sale.
   
   
3. To redeem, the borrower must pay the purchase price with interest, the foreclosure costs, and the buyer’s costs of operating and maintaining the property during the elapsed time between sale and redemption.

Non-Judicial Foreclosure

Power of sale clauses in the security instrument gives the lender the right to sell the property, and may specify the time, place, and terms of sale. If this is the case, then that procedure must be followed.

If not, the process is as follows:

1. A notice of default must be recorded with the county recorder’s office. The borrower in default must be served with a copy of the N.O.D. at least 120 days before the sale is to take place. The notice must also be published weekly for four successive weeks, with the last publication at least 20 days before the sale date.
   
   
2. Prior to the sale, the borrower retains all incidents of ownership in the property and may cure the default by paying all past due amounts plus costs, or dispose of the property to a buyer who may then step in and cure the default.
   
   
3. The sale must be an auction at which the property is sold to the highest bidder who must present cash or cash equivalents at the time of sale to the trustee. The sale must take place between 9:00 AM and 4:00 PM at the place designated in the recorded notice of default.
   
   
4. The sale may be postponed for as much as 180 days, if written notice is given to all recipients of the original notice of default at least 20 days prior to the scheduled sale date.
   
   
5. No redemption period is allowed in non-judicial foreclosure. Deficiency judgments are not allowed.

Links:

• 88.010 Foreclosure of liens by suit; judgment for amount of debt; other remedies
  Laws which regulate the foreclosure process.
  
  
• 88.060 Enforcement of judgment
  Law which regulates the judgment of foreclosure and sale date is given
  
  
• 88.070 Judgment foreclosing purchase money mortgage on real property
  Law which regulates the foreclosure of any mortgage given to secure payment.
  
  
• 312.010 When real property subject to tax foreclosure
  Laws which regulate the revenue and taxation, when in foreclosure.
  
  
• Oregon State Legislature

Bill Status:

• Bill: Oregon Senate Bill 965 (status: heard)
  Mortgage Brokers and Loan officers may be held personally liable for granting loans which end up in default.