What to do if you are facing foreclosure in Oregon
First of all, call us right away (971-235-9561). We have helped many people facing foreclosure in the Portland area, and many times we have been the one to buy their home. The biggest obstacle we have is a shortened time line.
Second of all, know the process. You need to know what is going to happen to you, and the rules to play by.
The Portland real estate market is seeing more and more foreclosures. (You can search for bank owned homes and short sales here)
I am by no means the first to talk about this (see Zillow’s take and Livinglies’s Weblog).
Check out the video from CnnMoney.com
This is not a solution to the foreclosure crisis that this nation is in (and Oregon is just starting to see). But it is a way for homeowners to stay in their home as long as possible to try and work things out. I had a friend in Arizona who was going facing foreclosure. He had purchased the home with a couple of friends and when the market turned, they bailed. Leaving him with the responsibility of the mortgage, he went in to massive debt trying to stay on top of the payments and soon fell behind on other bills. Here is what he should have done:
1- Begin trying to work out a solution with the bank as soon as you know you might
2- Stop making payments
3- Use that money to take care of your other debt
4- Either restructure your loan or sell it short
The point is that you have time before you lose your home. You can buy more time if you ask the bank to produce the note.
Foreclosure Laws for Oregon
• Judicial Foreclosure Available: Yes
• Non-Judicial Foreclosure Available: Yes (usually)
• Primary Security Instruments: Deed of Trust, Mortgage
• Timeline: 150 days – sale held; 160 trustee’s deed recorded;
• Right of Redemption: Rare
• Deficiency Judgments Allowed: Yes
Foreclosure in Oregon may be either by court action or by advertisement and sale, if there is a default.
Non-judicial Foreclosure Preliminary Notices
Recording
The trustee must record a notice of default.
Contents of Notice of Sale
The notice of sale should include a property description, recording information on the trust deed, a description of the default, the sum owing on the loan, the lender’s election to sell and the date, time and place of sale.
Mailing
After recording the Notice of Default and at least 120 days before the foreclosure sale, notice of the sale must be either served or mailed by both first class and certified mail to the borrower, the Department of Revenue, any owner of record and any person requesting notice.
Service
A copy of the notice of sale must be served on the occupant of the property 120 days before the foreclosure sale day.
Advertising
A copy of the notice must be published once a week for four successive weeks. The last publication must be made at least 20 days prior to the foreclosure sale day. The trustee must prepare and record an affidavit slating that the proper notices and advertising have been given.
Cure
The borrower, or any junior lien holder or claimant may cure the default prior to foreclosure by paying all past due sums plus costs, which would be the missed payments and costs. On a residential trust deed foreclosure, the borrower may be charged the lesser of the actual charges or a total of $550 for trustee’s and attorney’s fees. Reasonable charges may be made for other foreclosures.
Sale Procedures
Date
The date shall be the date given in the notice.
Time and Place
The sale must be conducted between 9 a.m. and 4 p.m. at a place designated in the notice.
Manner
The sale must be at auction to the highest bidder for cash. Any person, including the lender but excluding the trustee, may bid at the foreclosure sale. The purchaser must pay the bid price at the time of the sale. The trustee must give the buyer a deed within ten days. The buyer is also entitled to possession within ten days. The sale may be postponed, up to 180 days, provided 20 days’ advance notice is given by mail to the same persons as the original notice. A new time and place must be specified.
Special Procedures
If the foreclosure is stayed by bankruptcy, the trustee may give an amended notice of sale and sell the property with only 20 days’ notice as soon as the bankruptcy stay is lifted.
Deficiency
A deficiency judgment cannot be obtained through a non-judicial deed of trust foreclosure by advertisement. On commercial property secured by a trust deed, a deficiency judgment can be obtained by filing suit, but not on property covered by a purchase money mortgage. A purchase money mortgage is any mortgage where the unpaid balance is $50,000 on a primary or secondary single family residence. There are no other particular limits on deficiency judgments.
Redemption
A person who was entitled to receive notice of the foreclosure but did not receive it may sue to invalidate the foreclosure and redeem the property for a period of five years following the sale. On a judicial foreclosure, the borrower or a successor in interest may redeem property within 180 days after sale by paying the purchase price plus 9 percent plus the foreclosure purchaser’s expenses in operating and maintaining the property. A notice of no less than 2 nor more than 30 days must be given to the sheriff to redeem. There are restrictions on redemption rights if the borrower has transferred the property.
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Thanks for the info, I am facing a non-judicial deed of trust foreclosure by advertisement in 120 days. Do you know how much time I have after the sale on the court house steps before I must be out of the house?
Sorry I should have mentioned that I live in Deschutes County, Oregon
There may be County regulations that I am unaware of, but as far as I know the purchaser from the auction has a right to the home within 10 days. There are many ways that this could be different in your case though. Depending on who currently holds your note you may have your foreclosure postponed for different reasons. Is this your primary property or an investment? The best thing to do is to get an offer to purchase the home written by a qualified buyer. This type of action is usually enough to buy time so you don’t go into foreclosure. If you need help getting the short sale process going, please give me a call or shoot me an email. The more time you give yourself to get this worked out the better. Thanks for reading.