What Happens After a Foreclosure Notice in Oregon?
Foreclosures in Oregon can be either judicial -- in court -- or nonjudicial, although most are the latter. The nonjudicial process begins with a notice of default recorded on the property title and mailed to the borrower. This sets in motion a timeline and series of steps that ends in foreclosure unless the borrower repays the loan.
Other People Are Reading
-
The First Notice
-
When a borrower receives the notice of default, it usually doesn't come as a surprise. Typically, it was preceded by both phone calls and form letters from the lender, attempting to make contact with the borrower because he was late with one or more mortgage payments. The notice of default is usually recorded sometime after the third missed monthly payment.
Sale Notice
-
The notice of default must be served at least 120 days before the foreclosure sale. The sale must also be published in a newspaper at least once a week for four successive weeks, the last of which must be at least 20 days before the foreclosure sale. The foreclosure sale can be stopped by the borrower "curing" the default -- paying the lender all past-due amounts plus costs -- up to the sale.
-
The Sale
-
The foreclosure sale is an auction held during regular business hours on the sale date. Any person, except the trustee assigned to sell the property, may bid. The sale is made to the highest cash bidder. The sale may be postponed for up to 180 days if at least 20 days advance notice is given. Because of the statutorily required notices, the minimum time frame for a foreclosure in Oregon is 120 days; however, minimum time frames are rarely met. The average time for a foreclosure in the United States was 492 days near the end of 2010, according to Lender Processing Services, a national mortgage and title services firm.
Title and Redemption
-
In some states, there is a right of redemption period after the sale, during which time the owner can remain living in or renting the house and can repay the lender the mortgage balance plus foreclosure costs in full to reclaim the property. Oregon does not have a redemption period for nonjudicial foreclosures. Instead, title is changed from the former owner to the high bidder, or the lender if no one bids at the minimum auction price, within a day or two.
-
