OREGON FORECLOSURE PROCESS

Temporary federal Regulation X (RESPA): Special protections are in place until Oct. 1, 2022, for homeowners impacted by

the COVID-19 pandemic.

• For homeowners not in forbearance: Inform homeowners of forbearance options.

• For homeowners in forbearance: At least 10 days, but no more than 45 days before forbearance expiration, inform

homeowners of available repayment plans and/or loss mitigation options.

Nonjudicial Foreclosure

Foreclosure – 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. Oregon allows for two dierent foreclosure processes: judicial and nonjudicial. Foreclosure

can also occur when a homeowner does not pay their property taxes, a court judgment, or other

liens on the property. This covers Nonjudicial Foreclosure.

Nonjudicial Foreclosure – 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.

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

loan current. Learn more:

• Explore ﬁling for bankruptcy –

contact an attorney.

• Consider selling your home if

your mortgage company will

agree to additional time.

Missed

Payment

Call a housing

counselor or

dial 211.

36 Days

Mortgage company

attempts to contact

homeowner about

missed payments.

45 Days

Mortgage company

sends homeowner

a notice, a list of

housing counselors,

and available loss

mitigation options.

OFA Program

Unless exempted,

mortgage company will

notify homeowner about

the OFA Program and the

opportunity for a face-to-

face meeting (see reverse

for details).

Foreclosure Begins

If no agreement is

reached to avoid

foreclosure, or

homeowner does not

abide by the terms

of an agreement,

process may begin

for nonjudicial

foreclosure.

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!

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.

TIMELINE

Challenge of Sale

(if applicable)

If homeowner

disputes the

facts or the right

to foreclose,

homeowner must

immediately ﬁle a

lawsuit in court to

challenge the sale.

Auction Occurs

Auction may occur

between 120 and 180

days from the ﬁrst

notice date.

Complete Loss Mitigation Application

Homeowner may apply for a home retention

loss mitigation option before a foreclosure

sale date. Homeowner 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 for it to be considered.

• Within 30 days of receiving a complete

loss mitigation application, the mortgage

company should inform the homeowner of

decision taken.

Option to

Reinstate Loan

Up to ﬁve days before

a sale, homeowner

may pay what is owed,

including late and

other allowable fees

to reinstate the loan

to stop the sale.

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.

2 3

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OregonHomeownerHelp.org

WITHIN 120 DAYS

AFTER THE DEFAULT

STRUGGLING TO PAY YOUR NEXT MORTGAGE PAYMENT?

You are not alone. There is help.

Review your budget.

Reduce expenses.

Increase income.

Consult a certiﬁed housing counselor.

If you think you may miss a mortgage payment

Terms to Know

Default = You have missed a payment or do not meet the terms of your mortgage contract.

Beneﬁciary, trustee, lender, servicer = Mortgage company

Trustor, grantor, borrower = Homeowner

Resolution conference, mediation meeting, Oregon Foreclosure Avoidance Program (OFA), mediation case manager =

Face-to-face meeting

Your right to a face-to-face meeting

Oregon Foreclosure Avoidance (OFA) Program. Unless it ﬁles an

exemption, which is permitted for mortgage companies that ﬁled a limited

number of foreclosures the preceding year, a mortgage company must

notify a homeowner of OFA and the pre-foreclosure right to a face-to-face

meeting with a mortgage company representative. A homeowner may also

request a face-to-face meeting as soon as 30 days after a missed payment

and after meeting with a housing counselor, but carefully discuss this with

your counselor because starting OFA before the mortgage company does

may speed up the foreclosure process. To accept this meeting with the

mortgage company, the homeowner must:

Return completed form.

Pay applicable fees on time.

Gather and submit required documents.

Meet with housing counselor as scheduled.

If a face-to-face meeting takes place:

And homeowner and mortgage

company reach an agreement:

• Carefully review and sign

agreement.

• Keep a copy.

• If you fully comply with the

terms of agreement, you may

be able to avoid foreclosure.

And mortgage company complies with OFA requirements, but homeowner and

mortgage company do not reach an agreement:

• The mortgage company and the homeowner receive a certiﬁcate of

compliance, and then the mortgage company may start the foreclosure

process.

• If your mortgage company starts a foreclosure without a certiﬁcate of

compliance or is exempted to comply with this requirement, contact an

attorney immediately. You may be able to dispute and dismiss the foreclosure.

What to do if you miss a payment

36 days after first missed payment - The mortgage company will attempt to contact homeowner.

Respond to your mortgage company. Ask about options. Take notes.

45 days after first missed payment - Mortgage company sends written notice to homeowner with loss

mitigation options and a list of counseling agencies.

Consult a certiﬁed Oregon housing counselor for free foreclosure avoidance counseling.

Respond to mortgage company immediately to give you more time.

Provide information about your ﬁnancial situation.

Ask what options you have. Take notes.

Commit to make future payments on time, if you and your mortgage company agree on repayment terms.

ADDITIONAL INFORMATION AND RESOURCES:

Housing counselors: www.oregon.gov/ohcs/pages/talk-with-a-housing-counselor.aspx

Oregon Foreclosure Avoidance Program: www.foreclosuremediationor.org

Oregon State Bar: www.osbar.org/public/ris

Disclaimer: This information is based upon laws and regulations that may have changed

after its production. It is not legal advice. Please consult with an Oregon housing

counselor or attorney regarding your unique situation and Oregon foreclosure processes.

Last Revised: July 1, 2022

For more information: OregonHomeownerHelp.org or dial 211.

OregonHomeownerHelp.org