How foreclosure works in Oregon

The notices you will receive in Oregon, in order

1. Notice of Resolution Conference

   From Mediation Case Manager, before any notice of default, when a lender with more than 30 Oregon foreclosures last year plans to foreclose

   The program mails it within 10 days after the lender asks for a conference. It gives a range of dates, lists the documents you must send, and says you must meet a housing counselor first. You have 25 days to pay your fee, which by law cannot be more than $200, and send your financial information.

   ORS 86.726, 86.729

2. Letter explaining why you do not qualify

   From your lender, within 10 days after it decides you are not eligible for an option to avoid foreclosure

   The lender must mail it to every address it has for you and explain its reasons in plain language. This rule applies even to lenders that do not have to hold a resolution conference. Keep this letter and show it to your counselor or a lawyer.

   ORS 86.748

3. Notice of default and election to sell

   Recorded by the trustee or lender with the county clerk

   This is the formal start of an Oregon trustee foreclosure. It says you are in default and that the lender has chosen to sell the home. For a home loan it must be recorded along with a valid certificate of compliance from the resolution conference program or a copy of the lender's exemption affidavit.

   ORS 86.752

4. Notice of sale

   From the trustee, at least 120 days before the sale; also published once a week for 4 weeks in a local newspaper

   It must be served on you or mailed by first class and certified mail, and served on anyone living in the home. It lists the amount owed, the date, time and place of the sale, and your right to cure the default up to 5 days before the sale. Write the sale date down and keep the trustee's contact details.

   ORS 86.764, 86.771, 86.774

5. Notice that begins You are in danger of losing your property

   From the sender of the notice of sale, on or before the day the notice of sale goes out

   This large-type notice comes by first class and certified mail. It shows how much you needed to catch up as of a date, a phone number to get the current amount, the sale date and place, and what you can do to stop the sale. It also warns you about people who offer to help you keep your home.

   ORS 86.756

6. Notice of a new sale date

   From the trustee, at least 15 days before the new date when a sale is postponed

   A sale is postponed by announcing it at the time and place set for the sale. The trustee must then send written notice of the new date, time and place. Only one postponement of 2 calendar days or less can happen without this written notice.

   ORS 86.782(2)

7. Eviction summons and complaint

   From the buyer, no sooner than the 10th day after the sale

   If you are still in the home, the buyer must file an eviction case in court. The summons gives a first appearance date, usually about 7 days after the case is filed. Go to that court date, because missing it can lead to a quick judgment against you.

   ORS 86.782(6); ORS 105.135

The legal steps in Oregon

1. Missed payments and pre-foreclosure

   Federal rules generally bar the servicer from starting foreclosure until you are more than 120 days behind. Contact your servicer and a free housing counselor early. If you are more than 30 days behind, a counselor can help you request a resolution conference yourself.

   12 C.F.R. § 1024.41(f)

2. Resolution conference

   Before recording a notice of default, the lender must request a resolution conference with you unless it is exempt. The program mails you a notice. Within 25 days you must pay a fee of no more than $200 and send your documents, and you must see a housing counselor first. The conference is set within 75 days of the notice.

   ORS 86.726, 86.729

3. Notice of default recorded

   If no agreement is reached, the trustee records a notice of default in the county records. For a home loan it must be recorded with a certificate of compliance from the program, or a copy of the lender's exemption affidavit.

   ORS 86.752

4. Notice of sale and danger notice

   At least 120 days before the sale you must be served or mailed a notice of sale. With it comes a notice in large type that begins You are in danger of losing your property, which lists the sale date, the amount to catch up, and where to get free help.

   ORS 86.764, 86.756

5. Cure the default

   You can stop the sale by paying the past-due amount plus allowed costs any time up to five days before the sale date. For a home loan, trustee and attorney fees you must pay to cure are capped at $1,000 in total.

   ORS 86.778

6. Trustee's sale

   The trustee auctions the home to the highest bidder for cash. The sale can be postponed for up to 180 days in total, and you must get written notice of a new date at least 15 days ahead. After the sale you cannot redeem.

   ORS 86.782, 86.797

7. Moving out

   The buyer is entitled to possession on the 10th day after the sale. If you stay, the buyer must use the court eviction process to remove you.

   ORS 86.782(6)

Common questions in Oregon