Foreclosure in Oregon

What We'll Cover

• Judicial Foreclosure
• Nonjudicial Foreclosure
• Lien Priority
• Foreclosure Avoidance

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Judicial Foreclosure

Traditional Mortgage vs. Deed of Trust

• DoT allows nonjudicial foreclosure
• Created by statute

"Material" Breach

Lis Pendens

Foreclosure Lawsuit

• Parties
• Venue
• Legal Description

Lien Priority

Liens - what gets foreclosed?

• First Mortgage - 2003
• Line of Credit - 2005
• Condominium Assessment Lien - 2006
• Contractor's Lien - 2007

Necessary Parties

Owner's Response

Potential Defenses

• Fraud
• Laches
• Unclean Hands
• Failure to Credit Payments
• Statute of Limitations

Sheriff's Adverstisement

Sheriff's Sale

Confirmation of Sale

• At lease 10 days after sale
• Court looks for fraud, abuse, and adequate price

Redemption

• Statutory redemption period is 180 days
• Must pay sale price plus any fees and taxes

Sheriff's Deed Issued

Eviction

Nonjudicial Foreclosure

Characteristics of DoT

• Security instrument
• Parties: grantor, beneficiary, trustee
• No right of redemption

Trustee Requirements

• Licensed Oregon attorney
• Financial Institution
• Title Company
• Escrow Agent

Prerequisites

• Resolution Conference
• Recorded Assignments
• Proper Recorded Notice

Notice of Sale

• Notice must be provided at least 120 days before sale
• Personal service

Curing of Default

• At least 5 days prior to sale
• Pay entire amount due
• Pay costs incurred

Deed in Lieu

Application of Sale Proceeds

• Expenses of Sale
• Amount of Trust Deed
• Other Lien Holders
• Any surplus to owner

Short Sale

Kevin Harker
harkerlepore.com
503-922-1939