Foreclosure is the legal process by which a mortgage company seizes and sells a home because a homeowner does not make their payments or otherwise defaulted on the terms of their home loan. Foreclosure can also occur when a homeowner does not pay their property taxes, a court judgment, or other liens on the property. Oregon allows for two different foreclosure processes: judicial and nonjudicial.
Judicial foreclosure process
A complaint is filed in circuit court to foreclose on a property and reclaim it from the homeowner. If you receive a summons and complaint or any notice to appear in court regarding the sale of your house, contact an attorney as soon as possible.
Judicial foreclosure timeline
Nonjudicial foreclosure process
In this process, which occurs outside of the court system, a homeowner will receive a Danger Notice, Notice of Default, and/or a Notice of Sale by certified mail. If a homeowner disputes the facts or right to foreclose, homeowner must file a lawsuit in court to challenge the sale. Nonjudicial foreclosure auctions may occur quickly, typically between 120 and 180 days from the first notice date.
Nonjudicial foreclosure timeline
How to avoid foreclosure
Consider other ways to stop foreclosure if no loss mitigation or home retention option is worked out.
- Seek other options to bring the loan current. Learn more on the
Oregon Homeowner Help website.
- Explore filing for bankruptcy by contacting an attorney.
- Consider selling your home if your mortgage company will agree to additional time.
Additional information and resources