Nonjudicial Foreclosure Process

Oregon allows for two different foreclosure processes: judicial and nonjudicial. The following is a timeline of steps to take for homeowners in a nonjudicial foreclosure.

The homeowner can call a housing counselor or dial 211 for assistance.

Step 2: After 36 days

The mortgage company attempts to contact the homeowner about missed payments.

Step 3: After 45 days

The mortgage company sends the homeowner a notice, a list of housing counselors, and available loss mitigation options.

Step 4: Oregon Foreclosure Avoidance (OFA) Program

Unless exempted, the mortgage company will notify the homeowner about the OFA Program and the opportunity for a face-to-face meeting.

• If a facetoface meeting takes place and the homeowner and mortgage company reach an agreement, the homeowner should carefully review and sign the agreement and keep a copy. If the homeowner fully complies with the terms, foreclosure may be avoided.
• If the mortgage company complies with OFA requirements but no agreement is reached, both the mortgage company and homeowner receive a certificate of compliance, and the mortgage company may then start the foreclosure process. If a foreclosure begins without a certificate of compliance and the mortgage company is not exempt, contact an attorney immediately. You may be able to dispute and dismiss the foreclosure.

Step 5: Foreclosure begins

If no agreement is reached or the homeowner fails to comply with the terms of an agreement, the nonjudicial foreclosure process may begin.

Step 6: Attorney involvement

Contact an attorney to know your rights or help you respond. Carefully review all documents including notices, dates, and amounts owed or delinquent. Respond to everything you receive from the mortgage company or the mortgage company’s attorney by the deadline. Watch out for scams!

Step 7: Publication of sale

Before the sale, the mortgage company will publicize the sale in a newspaper of general circulation in your county for four weeks, ending 20 days before the sale date.

Step 8: Challenge of sale (if applicable)

If the homeowner disputes the facts or the right to foreclose, they must immediately file a lawsuit in court to challenge the sale.

Step 9: Complete loss mitigation application

The homeowner may apply for a home retention loss mitigation option to keep their home before a foreclosure sale date. They should apply as early as possible.

At least 37 days before sale date, the mortgage company must receive a homeowner’s complete loss mitigation application in order to be considered.

Within 30 days of receiving a complete loss mitigation application, the mortgage company should inform the homeowner of the decision.

Step 10: Option to reinstate loan

Up to five days before a sale, the homeowner may pay what is owed, including late and other allowable fees, to reinstate the loan to stop the sale.

Step 11: Auction occurs

The auction may occur between 120 and 180 days from the first notice date.

Step 12: Property possession and eviction

Ten days after a sale, the purchaser has the right to possession of the property and to evict the prior owner.

OHCS wants to ensure that everyone has access to its information and programs. If you would like this information in a different language, please email Language.Access@hcs.oregon.gov.