Oregon Foreclosure Laws

There are widely different laws in Oregon between judicial and non-judicial foreclosure. The process here can take between 120 and 180 days for completion.

In a judicial foreclosure procedure the lender is required to sue the defaulted borrower in court and obtain a declaration of foreclosure. At that point, the property may be sold at auction.

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 in order to maintain his or her rights to do so. And in that redemption 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.

On a non-judicial foreclosure a notice of default must be recorded with the county recorder’s office. The borrower in default must be served with a copy at least 120 days before the sale is to take place.

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.

The sale must be done with 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.

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