Oregon foreclosures are both judicial and non-judicial; means, the foreclosure may be through the court or out-of court. The foreclosure process generally takes about five months.
The lender has to first file a notice of default. After filing the notice, if there is no clause granting power-of-sale to the lender in the mortgage, the lender has to proceed with the foreclosure through the court system. Once the court declares the foreclosure the property is put up for sale.
Most mortgage deeds do include the power-of-sale clause, giving the rights to the lender to offer the property in sale to recover his debts in the event of any default of payments by the borrower. The lender records the default with the county record at least 4 months prior to the date of intended sale. The borrower is also notified by the lender of the notice recorded 4 months prior to the date of sale.
The notice of sale is to be published in a county newspaper once a week, for four consecutive weeks. The last publication should not be less than 20 days from the date of the sale.
The notice of sale shall mention, among other things;
The date of sale - this date shall not be less than 4 months from the date of filing the notice of default.
The place of sale.
The sale by auction shall take place at the place mentioned in the sale notice, between 9 a.m. and 4 p.m. Any member of the public, except the trustee (the borrower), can present bids for the property. The sale is awarded to the highest bidder. Upon a successful bid, the prized bidder has to pay the entire amount at the time of the auction. The trustee shall transfer the rights of the property to the successful bidder within 10 days of the completion of the sale by auction.
The auction sale can be postponed for 180 days without initiating the foreclosure procedure all over again. In the case of a bankruptcy sale, the sale can be postponed indefinitely.
Once the rights of the property are transferred to the successful bidder, the eviction of the property should also be completed. The occupants of the property have 10 days time to vacate the premises after the completion of the auction sale. The successful bidder has the rights to take possession on getting the rights transferred from the trustee.
A deficiency judgment cannot be obtained for a foreclosure sale done out-of-court.
In the state of Oregon, there shall be no redemption of sale by the borrower if the foreclosure is out-of-court.
If you need more information about Oregon foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.