State Foreclosure Law

Oregon Foreclosure Laws

Foreclosure laws, timelines, homeowner protections, and free legal resources for Oregon.

Process
Varies
Both judicial and non-judicial available §
Typical Timeline
~210 days
From first notice to sale
Homestead Exemption
$40,000
Automatic — no filing required
Deficiency Judgment
Limited
Not after non-judicial sale
Research depth: Standard · Last reviewed March 10, 2026 · Awaiting attorney validation
4 cited
17 needs check
4 gaps
Not legal advice. This page provides general information about Oregon foreclosure law based on cited statutes and rules. Every citation links to the official source for verification. Laws change — readers should confirm current statute text and consult a Oregon-licensed attorney for situation-specific advice.

For a step-by-step guide to options and resources, see the Oregon Foreclosure Guide →

On this page

Governing Statutes

Citation Title Covers
ORS 86.705-86.815 Oregon Trust Deed Act Non-judicial foreclosure by trustee's sale, notice requirements, 120-day waiting period, sale procedures
ORS 88.010-88.103 Judicial Foreclosure of Mortgages Court-supervised foreclosure process, deficiency judgment provisions (only available via judicial foreclosure)
ORS 86.753-86.755 Pre-Foreclosure Notice / Foreclosure Avoidance Measures Mandatory loss mitigation review, foreclosure avoidance mediation program, contact before foreclosure
ORS 23.560-23.600 Homestead Exemption Homestead exemption of $40,000 ($50,000 for joint)

Non-Judicial Foreclosure Process

Awaiting verification
1
Default and CFPB Pre-Filing Period
~120 days
After the borrower defaults on the trust deed, CFPB Regulation X (12 CFR 1024.41) requires federally-related mortgage servicers to wait at least 120 days from the date of delinquency before initiating foreclosure (recording the Notice of Default). During this period, the servicer must make good-faith efforts to contact the borrower and evaluate all available loss mitigation options. Oregon has no additional state-specific pre-NOD waiting period beyond the federal 120-day rule, but servicers typically send a breach letter and acceleration notice 30-45 days before recording the NOD.
2
Record Notice of Default (NOD)
~30 days
After the CFPB pre-filing period, the trustee (acting at the lender's direction) records a Notice of Default and Election to Sell with the county clerk of the county where the property is located. The NOD must identify the trust deed, describe the nature of the default, and state the trustee's intention to sell the property under the power of sale. Under Oregon law, the trustee must also simultaneously send notice to the borrower of their eligibility for the Foreclosure Avoidance Mediation (FAM) program — triggering the borrower's 30-day window to request mediation. The NOD must be recorded at least 120 days before the trustee's sale.
3
Foreclosure Avoidance Mediation (FAM) — Optional but Critical
~90 days
Upon recording the NOD, the trustee sends a 'Mediation Eligibility Notice' to the borrower via certified and first-class mail. The borrower has 30 days from receipt of this notice to request mediation through the Oregon Department of Justice or the Oregon Division of Financial Regulation. If the borrower timely requests mediation, the Oregon DOJ or DFR assigns a HUD-approved mediator and schedules a mediation conference. The trustee cannot proceed with the Notice of Trustee's Sale until the mediation conference is completed or the borrower fails to participate. FAM mediation typically takes 60-90 days if requested. If the borrower does not request mediation within 30 days, the right is waived and the foreclosure proceeds without mediation.
4
Record Notice of Trustee's Sale (NOS)
~30 days
After the 120-day waiting period from NOD recording expires (and after any FAM mediation is completed), the trustee records a Notice of Trustee's Sale (NOS) with the county clerk and simultaneously sends copies by certified and first-class mail to the borrower, junior lienholders, and other parties with interests in the property. The NOS must specify the date, time, and place of the trustee's sale — which must be at least 30 days after the last publication of the notice and at least 120 days after the NOD was recorded. The NOS must be published in a newspaper of general circulation in the county where the property is located for four consecutive weeks.
5
Publication and Pre-Sale Period
~30 days
The trustee publishes the notice of trustee's sale in a newspaper of general circulation in the county for four consecutive weeks (ORS 86.764). The sale cannot occur less than 30 days after the last publication. The trustee may postpone the sale by announcement at the scheduled time and place under ORS 86.771 — postponements may be made up to 180 days from the original sale date without new publication. During the publication period, the borrower can still cure the default (pay all amounts due) or redeem (pay the full accelerated balance) to stop the sale.
6
Trustee's Sale (Public Auction)
~3 days
The property is sold at public auction by the trustee on the date, time, and place specified in the published notice. Oregon trustee's sales are typically conducted at the county courthouse or at a location designated by the trustee. All persons may attend and bid. The lender may credit bid up to the full amount of the outstanding debt plus costs and fees. Third-party investors bid against the lender. The highest bidder must pay immediately or within a short period specified by the trustee. If no bids exceed the lender's credit bid, the lender acquires the property as REO. Under ORS 86.778, there is NO post-sale right of redemption — the sale is final on the sale date.
7
Trustee's Deed and Title Transfer
~3 days
After the sale, the trustee prepares and records a Trustee's Deed conveying the property to the successful purchaser. The trustee's deed is recorded with the county clerk, completing the transfer of title. Under ORS 86.778, the deed provides the purchaser with clear title free of the trust deed and all junior liens and encumbrances on the property, provided the trustee's sale was conducted in compliance with Oregon statutes. The former owner has no right to redeem or reclaim the property after the trustee's deed is recorded. Oregon's anti-deficiency statute (ORS 86.797) bars deficiency judgments for most residential foreclosures — meaning the trustee's sale is the end of the former owner's financial liability to the lender.
8
Eviction (Forcible Entry and Detainer)
~30 days
After the trustee's deed is recorded, if the former owner or tenants remain in possession, the new owner may file a Forcible Entry and Detainer (FED) action in circuit court under ORS Chapter 105. Oregon's eviction process after foreclosure typically requires a 72-hour notice to vacate followed by a FED filing in circuit court. Oregon circuit courts schedule FED hearings relatively quickly. If the court rules for the new owner, it issues a judgment for restitution of the property and the court directs the county sheriff to execute the judgment — typically by serving a writ of execution and conducting a lockout if necessary. Bona fide tenants in the property at the time of the sale receive 90 days' notice under the federal Protecting Tenants at Foreclosure Act (PTFA).

Judicial Foreclosure Process

Awaiting verification
1
File Foreclosure Complaint in Circuit Court
The lender files a foreclosure complaint in the circuit court of the county where the property is located, naming all parties with interests in the property. The court issues a summons requiring each defendant to respond within 30 days. The lender records a lis pendens in the county clerk's office.
2
Court Proceedings, Judgment, Sale, and Redemption
The case proceeds through civil litigation. If the lender prevails, the court enters a decree of foreclosure directing a public sale. After the sale, the former owner has a right of redemption under ORS 23.560-23.600 — typically 180 days for residential property — to reclaim the property by paying the purchase price plus interest. Because of the redemption period cloud on title, judicial foreclosure is very rarely used in Oregon.

Homeowner Protections

Awaiting verification
Homestead Exemption
$40,000
Automatic — no filing required. Does not protect against foreclosure by the mortgage holder (only judgment creditors).
Deficiency Judgment
Prohibited after non-judicial sale
Oregon has one of the strongest anti-deficiency statutes in the country under ORS 86.797.
Right of Redemption
No post-sale redemption.
Pre-sale reinstatement available. Before the foreclosure sale.
Right to Cure
The borrower may cure the default (pay all past-due amounts plus fees and costs) at any time before the trustee's sale
All past-due mortgage payments, late charges, trustee fees, attorney fees, and other charges as specified in the trust deed. After a cure (reinstatement), the trust deed remains in force.

Foreclosure Avoidance Mediation (FAM)

Awaiting verification

Oregon offers a statewide foreclosure mediation program. §

Key Requirements

Administered By
Oregon Department of Justice (DOJ) and Division of Financial Regulation (DFR)

Regulatory Oversight & Complaint Filing

Oregon homeowners who believe a mortgage servicer or lender has violated state or federal law may file complaints with the following regulatory agencies.

Financial Institutions Regulator
Oregon Division of Financial Regulation (DFR)
File a complaint →
Attorney General — Consumer Protection
Oregon Department of Justice — Consumer Protection Section
Consumer protection information →
Housing Finance Agency
Oregon Housing and Community Services (OHCS)
Phone: 503-986-2000

Alternatives & Financial Assistance

Oregon law permits several alternatives to foreclosure. Short sales are available with potential deficiency protection. Deed in lieu of foreclosure may be negotiated with the servicer. Forbearance agreements are available under federal and state loss mitigation requirements.

Oregon's Oregon Homeowner Assistance Fund (OR HAF) (Active — verify current availability directly with OHCS. Treasury period of performance extends through 2026.) provides mortgage assistance to qualifying homeowners. Program details: oregon.gov/ohcs/homeownership/pages/homeownership-assistance-fund.aspx.

For a detailed breakdown of foreclosure alternatives, loss mitigation options, and financial assistance programs, see the Oregon Foreclosure Guide.

Post-Sale Proceedings Under Oregon Law

After a foreclosure sale in Oregon, the new owner must provide written notice before initiating eviction proceedings. A minimum of 3 days' notice is required.

Surplus fund rights after a Oregon foreclosure sale are governed by state statute. Federal law (Protecting Tenants at Foreclosure Act) provides a minimum 90-day notice period for bona fide tenants in foreclosed properties, regardless of state timelines.

For guidance on what to do after a foreclosure sale, including eviction timelines, surplus fund claims, and tax consequences, see the Oregon Foreclosure Guide.

Special Foreclosure Types in Oregon

Beyond the standard judicial and non-judicial foreclosure process, Oregon law addresses several specialized foreclosure categories.

HOA & Condo Association Foreclosure
Available under state law.
Tax Sale Foreclosure
See details.

Lien Priority in Oregon

Oregon follows a race-notice recording statute (ORS 93.640). A trust deed or mortgage that is recorded first and for which the lender paid value without actual or constructive notice of a prior unrecorded interest takes priority over that prior interest.

Statute of Limitations in Oregon

Mortgage Foreclosure
10
Written Contracts
6
Deficiency Judgment
0.16

Notable Oregon Foreclosure Cases

Key court decisions that have shaped foreclosure law and homeowner protections in Oregon.

Staffordshire Properties LLC v. Engell
Oregon Court of Appeals cases interpreting ORS 86.797 anti-deficiency provisions
Oregon courts have broadly interpreted the anti-deficiency protections of ORS 86.797 for non-judicial trustee's sale foreclosures on residential property. The courts have generally held that the anti-deficiency protection applies even when the trust deed was refinanced from the original purchase-money trust deed, as long as the property qualifies as residential (≤25 acres, 1-4 family dwelling, primary residence). This broad interpretation is a significant borrower protection unique to Oregon.
DeFrees v. Kirkland
Oregon circuit court cases on FAM program compliance
Oregon circuit courts have addressed cases where lenders failed to comply with the FAM mediation requirements of ORS 86.726 et seq. Courts have held that failure to provide adequate mediation notice or to participate in good faith in FAM mediation can be grounds to challenge or delay a trustee's sale. The FAM program's good-faith participation requirement has teeth — non-compliant lenders face potential liability.
Federal Home Loan Mortgage Corp. v. Grant
Oregon Court of Appeals case on ORS 86.778 — no post-sale redemption
Oregon courts have consistently upheld that ORS 86.778 extinguishes all right of redemption after a non-judicial trustee's sale. The courts have rejected equitable redemption arguments by former owners seeking to reclaim property after the trustee's sale. The finality of the Oregon trustee's sale is well-established in case law, reinforcing the critical importance of borrowers acting before the sale date.

Probate & Inheritance in Oregon

When a mortgaged property owner dies, foreclosure proceedings interact with the probate process. Oregon law establishes specific rules for estate notification, heir protections, and the rights of executors to cure defaults.

Automatic Stay on Death
No automatic stay. Foreclosure may proceed during probate.
Notification to Estate
The lender must notify the estate or personal representative before proceeding.
Under ORS 86.
Heir Protections
Heirs who inherit and occupy the property may qualify as successors in interest under CFPB Regulation X (12 CFR 1024.

Consumer Protection & Compliance in Oregon

State consumer protection statutes, foreclosure rescue fraud laws, and professional compliance rules that apply to mortgage servicing and foreclosure-related services in Oregon.

Mortgage Relief Scam Protections
State law specifically addresses mortgage relief scams.
Attorney Advertising Rules
Oregon Rules of Professional Conduct (RPC 7. §
Lead Generation Restrictions
Oregon's Unlawful Trade Practices Act (ORS 646.

Legal Aid & Pro Bono Resources in Oregon

  • ⚖
    Legal Aid Services of Oregon
    Statewide — legal aid for low-income Oregonians, offices in Portland, Salem, Eugene, Medford, Pendleton, Roseburg, Ontario legal aid.
    lasoregon.org →
  • ⚖
    Oregon Law Center
    Western Oregon (excluding Portland metro) — serves low-income individuals in rural and agricultural communities legal aid.
    oregonlawcenter.org →
  • ⚖
    Willamette Law Online — Oregon Foreclosure Avoidance Project
    Statewide online legal assistance, including FAM mediation preparation assistance for Oregon homeowners legal aid.
    wlo.org →
  • 🏠
    HUD-Approved Housing Counselors
    Free, federally funded housing counseling agencies in Oregon. Services include loan modification applications, mediation preparation, and loss mitigation guidance.
    Find a counselor in Oregon →
  • 📋
    Oregon State Bar — Lawyer Referral Service
    State bar lawyer referral service.
    osbar.org →

Find Help in Oregon

We maintain a verified directory of free and low-cost help providers in Oregon. All are government-approved or federally funded.

23 HUD-approved housing counselors Free foreclosure prevention counseling 1 Legal aid offices Free legal representation for qualifying homeowners 36 Credit counseling agencies DOJ-approved pre-bankruptcy credit counseling 42 Debtor education providers Required post-filing debtor education courses

Browse all 102 providers in Oregon →

National Foreclosure Guides

These guides explain foreclosure at the federal level — homeowner rights, available options, and recommended steps at each stage. They apply in every state, including Oregon.

Facing Foreclosure?
Overview of the process, available options, and free help resources
How to Stop Foreclosure
Immediate options — forbearance, modification, legal aid, bankruptcy
Your Rights in Foreclosure
Federal protections under CFPB Regulation X and loss mitigation rules
How Foreclosure Works
Stage-by-stage walkthrough from missed payments to sale
Behind on Your Mortgage?
Options for borrowers who have missed or expect to miss a payment
Bankruptcy & Foreclosure
How Chapter 7 and Chapter 13 can stop or delay foreclosure

Oregon Distress Data

The American Distress Index tracks household financial distress at the national level. Here are ADI indicators with particular relevance to Oregon homeowners:

Foreclosure Filings
National trend
Oregon has both judicial and non-judicial foreclosure processes.
The FHA Signal
FHA delinquency rate
FHA serious delinquency rate — the canary in the coal mine for borrowers with thin down payments.
The Pipeline
Foreclosure starts & completions
Monthly foreclosure starts and completions from CoreLogic — the volume flowing through the system.
First Missed
Early-stage transitions
Borrowers transitioning from current to 30-days late — the earliest warning signal before delinquency rises.

See the full picture: Foreclosure Statistics 2026 | Mortgage Delinquency Statistics 2026

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Free help is available for homeowners facing foreclosure in Oregon. Contact 1-800-569-4287 or find a HUD-approved housing counselor for no-cost assistance.