How Long Can I Stay in the House After the Foreclosure Auction in Oregon?
Foreclosures in Oregon can be either judicial or non-judicial depending on the documents you signed when you purchased your home. In Oregon, the amount of time you can stay in your home after a foreclosure sale takes place varies significantly depending on the foreclosure process used.
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Foreclosure Time Frame
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In Oregon, foreclosures typically take 150 to 180 days to complete on average. This is the time frame for an uncontested foreclosure, meaning that the borrower does not fight the lender during the foreclosure process, file bankruptcy or pursue other means to delay the foreclosure sale. The lender is required to follow Oregon laws regarding notice provisions and the foreclosure sale process.
Non-Judicial Foreclosures
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Properties that are secured by a trust deed or deed of trust in Oregon usually contain a "power of sale" clause. In essence, this clause gives the lender permission from the borrower to sell the property at a foreclosure sale in the event that the borrower defaults on the loan. Non-judicial foreclosures have specific notice provisions that must be followed by the foreclosure trustee since the court is not ruling on the foreclosure. Non-judicial foreclosures in Oregon do not have a redemption period for the borrower after the sale is complete. The high bidder at the foreclosure sale takes possession of the property 10 days after the sale takes place when the trustee transfers ownership of the property to the highest bidder.
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Judicial Foreclosures
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If the deed of trust does not include a power of sale clause, or if the borrower contests the foreclosure proceedings, the home is foreclosed through the courts and becomes a judicial foreclosure. Once a judicial foreclosure takes place, the borrower has 180 days after the foreclosure to execute a statutory right of redemption. During this time, the borrower can reclaim the property by paying off the unpaid loan balance and any costs incurred by the lender during the foreclosure process. A borrower who is executing a right of redemption must notify the county sheriff of this at least two days, but no more than 30 days before redemption occurs.
Deficiency Judgments
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In Oregon, the lender has the right to pursue a deficiency judgment from a foreclosed borrower. This means that if the unpaid loan balance is $130,000 and the property sells at the foreclosure sale for $100,000, the lender can seek a judgment against the borrower for $30,000. Even though the borrower no longer has possession of the home, the deficiency judgment will appear on the borrower's credit report, and the borrower is responsible for repaying this amount to the lender.
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References
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