Best Foreclosure Lawyers in Oregon

About Foreclosure Law in Oregon, United States

Foreclosure is a legal process through which a lender can recover the balance of a loan from a borrower who has stopped making payments. In Oregon, this typically involves the lender selling the property in order to recoup outstanding debts. The process of foreclosure in Oregon may be judicial (involving the courts) or non-judicial (handled outside of court, most often through a trustee sale). Understanding your rights, the timelines involved, and potential consequences are crucial if you are facing foreclosure or have concerns about your mortgage obligations.

Why You May Need a Lawyer

Foreclosure can be a complex and emotionally challenging process. Legal representation can be essential in several situations, such as:

• If you have received a Notice of Default or Notice of Sale from your lender or servicer.
• If you believe there may have been errors or fraudulent activity in your loan documents or the foreclosure process.
• If you want to explore alternatives to foreclosure, such as loan modification, short sale, or a deed in lieu of foreclosure.
• If you have questions about your rights as a homeowner or wish to defend against a foreclosure in court.
• If you are concerned about potential eviction after foreclosure.
• If you need help negotiating with your lender or understanding government programs available in Oregon.

An attorney experienced in Oregon foreclosure law can review your unique situation, explain your legal options, help protect your rights, and work to achieve the best possible outcome for you and your family.

Local Laws Overview

Oregon has its own set of laws and procedures that govern how foreclosures are conducted. Here are some of the most important aspects:

• Types of Foreclosure: Most residential foreclosures in Oregon are non-judicial, meaning they do not go through the court system. However, judicial foreclosure is also possible.
• Non-Judicial Foreclosure Process: The lender must follow a series of notices, including recording a Notice of Default and then a Notice of Sale. There are legal timelines and specific requirements for both notices.
• Right to Cure: Homeowners often have the right to reinstate or cure the default by paying the overdue amount plus fees up to five days before the sale.
• Sale and Redemption: Once the sale occurs in a non-judicial foreclosure, homeowners do not have a right to redeem or buy back the property. In a judicial foreclosure, there may sometimes be a redemption period.
• Deficiency Judgments: Generally, in non-judicial foreclosures Oregon law prohibits the lender from seeking a deficiency judgment to collect any remaining balance if the home sells for less than the amount owed.
• Eviction after Foreclosure: If the property is sold at foreclosure, the new owner must follow legal eviction procedures to remove occupants if they do not vacate voluntarily.
• Notice and Mediation: State law also provides homeowners with certain notices and options, including a right to request foreclosure avoidance mediation under certain circumstances.

Frequently Asked Questions

What is the difference between judicial and non-judicial foreclosure in Oregon?

Judicial foreclosure involves court action and is less common in Oregon. Non-judicial foreclosure is more typical for deed of trust loans and happens outside the court system, following statutory procedures.

How long does the non-judicial foreclosure process take?

The process can take as little as four months from Notice of Default to the sale, but timelines may vary depending on several factors, including lender practices and possible mediation.

Will I have to pay the remaining loan balance after foreclosure?

Generally, in most non-judicial foreclosures in Oregon, the lender cannot pursue you for a deficiency judgment if the sale does not cover the total debt. However, check your loan documents and seek legal advice, especially for judicial foreclosures or certain second mortgages.

What are my options to avoid foreclosure in Oregon?

Homeowners can explore several options, such as loan modification, repayment plans, forbearance, short sale, deed in lieu of foreclosure, or mediation. Legal counsel or a housing counselor can offer guidance based on your specific situation.

How does mediation work in Oregon foreclosures?

Oregon law provides for a foreclosure avoidance facilitation program, allowing eligible homeowners to request mediation with their lender before the foreclosure sale takes place, to try to find an alternative solution.

Can filing for bankruptcy stop a foreclosure in Oregon?

Filing for bankruptcy triggers an automatic stay, which temporarily halts foreclosure proceedings. However, this is a complex legal decision that requires the careful advice of an attorney.

Are tenants protected if the property they rent goes into foreclosure?

Federal and Oregon laws offer certain protections for renters, such as notice requirements and eviction procedures, but specifics depend on individual circumstances and timing. Tenants should seek legal advice promptly upon learning of a foreclosure.

How do I know if my foreclosure was processed properly?

State law requires lenders and trustees to follow specific steps and provide legal notices throughout the process. If you suspect errors or did not receive the required documentation, consult an attorney immediately.

What happens after my house is sold at foreclosure auction?

You may remain in the home until the eviction process is completed, which can take several additional weeks. The new owner must provide proper notice before initiating any eviction action.

Where can I get free or low-cost help for foreclosure issues in Oregon?

Numerous non-profit agencies and legal aid organizations provide assistance to homeowners facing foreclosure. See the additional resources below for more information.

Additional Resources

If you are dealing with foreclosure in Oregon, consider reaching out to the following organizations and resources for assistance or more information:

• Oregon State Bar Lawyer Referral Service
• Legal Aid Services of Oregon
• Oregon Department of Justice - Consumer Protection Division
• Oregon Housing and Community Services
• HUD-approved housing counseling agencies in Oregon
• Oregon Foreclosure Avoidance Program
• Local city or county government housing offices

Next Steps

If you are facing foreclosure or are worried about your mortgage, it is important to act quickly. Here is a recommended course of action:

• Do not ignore letters or notices from your lender or trustee.
• Gather all related documents, such as loan agreements and foreclosure notices.
• Contact a qualified Oregon foreclosure attorney for legal advice tailored to your situation.
• Consider reaching out to a HUD-approved housing counselor for additional support and resources.
• Explore federal, state, and non-profit programs that may offer assistance or mediation.
• Attend any required mediation or court hearings and comply with all timelines and notice requirements.

Understanding your rights and getting professional help can make a significant difference. Even if foreclosure seems imminent, there may still be time to review your options and protect your interests.