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Understanding Foreclosure in Oregon: Your Options When Facing Financial Hardship

Foreclosure in the state of Oregon.

Foreclosure is a process by which a lender takes possession of a property when the borrower fails to make mortgage payments. In Oregon, the foreclosure process can be complicated and overwhelming, especially if you are facing financial hardship. However, there are options available to help you avoid foreclosure and protect your home.

Here's a closer look at the foreclosure process and your options in the state of Oregon:

Foreclosure Process in Oregon

In Oregon, the foreclosure process typically begins when a borrower misses one or more mortgage payments. After the borrower has missed payments for a certain period of time (usually three to six months), the lender can initiate foreclosure proceedings. The process includes the following steps:

  1. Notice of Default: The lender must send a notice of default to the borrower, which informs them that they are in default and that the lender intends to initiate foreclosure proceedings.

  2. Notice of Sale: If the borrower does not cure the default, the lender must send a notice of sale, which informs the borrower that the property will be sold at a public auction.

  3. Public Auction: The property is sold at a public auction to the highest bidder. If the property does not sell at the auction, it becomes the property of the lender.

Options to Avoid Foreclosure in Oregon

If you are facing foreclosure in Oregon, there are several options available to help you avoid losing your home. Here are some of the most common options:

  1. Loan Modification: A loan modification is a change to the terms of your mortgage that can help you make payments more manageable. This could include reducing the interest rate, extending the repayment term, or even forgiving a portion of the principal balance.

  2. Refinance: Refinancing involves replacing your existing mortgage with a new one that has more favorable terms, such as a lower interest rate or a longer repayment term.

  3. Short Sale: A short sale involves selling your home for less than the outstanding mortgage balance, with the lender agreeing to accept the proceeds as full satisfaction of the debt.

  4. Deed in Lieu of Foreclosure: With a deed in lieu of foreclosure, you transfer ownership of your home to the lender in exchange for the forgiveness of your mortgage debt.

  5. Selling to an Investor Subject-To: This option involves selling your property to an investor who takes over your mortgage payments subject-to the existing mortgage terms. This can help you avoid foreclosure and protect your credit score.

  6. Bankruptcy: Filing for bankruptcy can provide temporary relief from foreclosure proceedings, as well as other debts.

Each of these options has its own pros and cons, and the best option for you will depend on your individual circumstances.


Facing foreclosure in Oregon can be a daunting experience, but it's important to remember that there are options available to help you avoid losing your home. Whether it's through a loan modification, refinance, short sale, deed in lieu of foreclosure, selling to an investor subject-to, or bankruptcy, there are ways to protect your home and your financial future. If you're facing financial hardship and are at risk of foreclosure, consider speaking with a qualified real estate attorney, or reach out to our team of foreclosure experts, to explore your options and develop a plan that works for you.

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