Step 1: Homeowner misses a payment
Call a housing counselor or dial 211.
Step 2: After 36 days
The mortgage company tries to contact the homeowner about missed payments. If it does:
- Respond to the mortgage company,
- Ask about options, and
- Take notes.
Step 3: After 45 days
The mortgage company sends the homeowner a written notice, a list of housing counselors, and available loss mitigation options.
- Consult a certified Oregon housing counselor for free foreclosure avoidance counseling.
- Respond to the mortgage company immediately to give yourself more time.
- Provide information about your financial situation.
- Ask what options you have and take notes.
- Commit to make future payments on time if you and the mortgage company agree on repayment terms.
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 face-to-face 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 to avoid foreclosure, or the homeowner does not follow the terms of an agreement, the 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: Request to auction
Upon receiving a judgment allowing it to foreclose, the mortgage company may request that the sheriff auction the home at a sheriff’s sale. The sheriff will auction the property after receiving that request.
Step 8: Publication of sale
Before the sale,
the sheriff will post notice of the sale date online for at least 28 days and publish notice of the sale in a newspaper of general circulation in your county for four weeks.
Step 9: Homeowner response
A homeowner must respond by filing a motion or answer, including to dispute facts or the right to foreclosure,
within 30 days or the mortgage company may obtain a judgment by default allowing it to sell the property.
Step 10: Complete loss mitigation application
The homeowner may apply for a 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 11: Option to reinstate loan
Up to the day of a sale, the homeowner may pay what is owed, including late and other allowable fees, to reinstate the loan to stop the sale.
Step 12: Auction occurs
The sheriff may auction the property between 60 and 150 days after the judgment allowing foreclosure.
Step 13: Property possession and eviction
Immediately after a sale, a purchaser has the right to possess the property. If the purchaser does not obtain possession, an eviction can occur.
Step 14: Option to repurchase
Within 180 days after the sheriff’s sale date, the home may be repurchased. Seek advice if anyone offers to purchase your redemption rights.
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