 Oregon Loan Modification Guidelines
When you develop a definite plan of action with well-timed, well-informed
steps, you can stop the foreclosure process and save your home. We have
outlined the foreclosure process for the state of Oregon .
Judicial Foreclosure Available: Yes
Non-judicial Foreclosure Available: Yes
Foreclosure in Oregon may be either by court action or by advertisement
and sale, if there is a default.
Non-judicial Foreclosure Preliminary Notices
Recording
The trustee must record a notice of default.
Contents of Notice of Sale
The notice of sale should include 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.
Mailing
After recording the Notice of Default and at least 120 days before the
foreclosure sale, notice of the sale must be either served or mailed by
both first class and certified mail to the borrower, the Department of
Revenue, any owner of record and any person requesting notice.
Service
A copy of the notice of sale must be served on the occupant of the property
120 days before the foreclosure sale day.
Advertising
A copy of the notice must be published once a week for four successive
weeks. The last publication must be made at least 20 days prior to the
foreclosure sale day. The trustee must prepare and record an affidavit
slating that the proper notices and advertising have been given.
Cure
The borrower, or any junior lien holder or claimant may cure the default
prior to foreclosure by paying all past due sums plus costs, which would
be the missed payments and costs. On a residential trust deed foreclosure,
the borrower may be charged the lesser of the actual charges or a total
of $550 for trustee's and attorney's fees. Reasonable charges may be made
for other foreclosures.
Sale Procedures
Date
The date shall be the date given in the notice.
Time and Place
The sale must be conducted between 9 a.m. and 4 p.m. at a place designated
in the notice.
Manner
The sale must be at auction to the highest bidder for cash. Any person,
including the lender but excluding the trustee, may bid at the foreclosure
sale. The purchaser must pay the bid price at the time of the sale. The
trustee must give the buyer a deed within ten days. The buyer is also entitled
to possession within ten days. The sale may be postponed, up to 180 days,
provided 20 days' advance notice is given by mail to the same persons as
the original notice. A new time and place must be specified.
Special Procedures
If the foreclosure is stayed by bankruptcy, the trustee may give an amended
notice of sale and sell the property with only 20 days' notice as soon
as the bankruptcy stay is lifted.
Deficiency
A deficiency judgment cannot be obtained through a non-judicial deed of
trust foreclosure by advertisement. On commercial property secured by a
trust deed, a deficiency judgment can be obtained by filing suit, but not
on property covered by a purchase money mortgage. A purchase money mortgage
is any mortgage where the unpaid balance is $50,000 on a primary or secondary
single family residence. There are no other particular limits on deficiency
judgments.
Redemption
A person who was entitled to receive notice of the foreclosure but did
not receive it may sue to invalidate the foreclosure and redeem the property
for a period of five years following the sale. On a judicial foreclosure,
the borrower or a successor in interest may redeem property within 180
days after sale by paying the purchase price plus 9 percent plus the foreclosure
purchaser's expenses in operating and maintaining the property. A notice
of no less than 2 nor more than 30 days must be given to the sheriff to
redeem. There are restrictions on redemption rights if the borrower has
transferred the property.
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