Foreclosure in Oregon: What You Need to Know

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Are you a homeowner in Oregon who is facing foreclosure? If so, you might wonder what you can do to protect your credit and your family.

This blog post will provide an overview of the Oregon foreclosure process. Find out how to avoid foreclosure and what options you have if you can’t make your mortgage payments. Keep reading if you are feeling lost and don’t know where to go for help.

What is Foreclosure?

Foreclosure refers to the seizure of a mortgaged property after a mortgage payment has not been made. Generally, federal law prohibits foreclosures until 120 days after your mortgage becomes past due. There are, however, some exceptions. 

How to Avoid Foreclosure

For those in default on their mortgage, there are a few options available to them to avoid foreclosure.

Talk to Your Lender

Your lender should be contacted first if you are having difficulties making payments. You may be able to get back on track by making smaller payments over a longer period of time.

Request a Loan Modification

Having trouble making your mortgage payments may allow you to consider a loan modification. The interest rate or repayment period of your loan might be modified in order to prevent foreclosure.

Sell Your Home

Selling your home can be a viable option if you are experiencing financial difficulties. This may not be an easy decision, but it can save you from going into foreclosure.

How to Delay Foreclosure

To slow down or halt foreclosure, you can do a few things.

Reinstate the Loan

According to Oregon law, you have five days before the sale to reinstate your loan. Additionally, state law limits the amount a borrower can be charged in attorney’s fees or trustee’s fees.

Redeem the Property

The home may also be redeemed by the foreclosed borrower after the foreclosure sale in some states. Nonjudicial foreclosures in Oregon are not subject to a redemption period after the sale. A trustee, however, has the right to rescind a foreclosure sale and void the deed within ten calendar days after it occurs if the borrower and lender agree to a foreclosure avoidance measure to delay or discontinue the sale, or if the lender accepts funds to reinstate the loan within ten calendar days after the sale.

File for Bankruptcy

Bankruptcy has shortcomings, but it can help prevent foreclosure as creditors are not allowed to collect debts after filing bankruptcy. Contact a bankruptcy lawyer to learn more about your options.

The Foreclosure Process in Oregon

Defaulting your mortgage payments in Oregon may result in a judicial or nonjudicial foreclosure. Taking over a home through foreclosure can be complicated, so it is important to understand how they work. In Oregon, the foreclosure process can take up to six months to complete. 

Judicial Foreclosure

A judicial foreclosure is initiated by a lawsuit filed by a lender seeking an order to allow a foreclosure sale. Without a written response from the borrower, the lender will automatically win the case. Defending the foreclosure lawsuit, however, will require the court to review the evidence and decide who will win. Your home will be auctioned if the lender wins and the judge enters a judgment.

Nonjudicial Foreclosure

When a lender chooses to foreclose nonjudicially, they must follow the state’s out-of-court procedures. A foreclosure sale can be held after the lender completes the required steps. Nonjudicial processes are preferred by most lenders in Oregon because they are faster and cheaper than court proceedings.

The Consequences of Foreclosure

Homeowners and their communities can suffer devastating consequences from foreclosure. The foreclosure process can result in homeowners losing their homes and harming their credit scores. Therefore, obtaining a mortgage or credit line may be challenging. In addition, foreclosure can be emotionally draining.

Foreclosure can also negatively affect communities. A foreclosed neighborhood can have a decrease in property values, leading to a decline in tax revenues and an increase in crime.

Resources for Homeowners Facing Foreclosure in Oregon

If you are facing foreclosure in Oregon, several resources are available to you. The U.S. Department of Housing and Urban Development offers homeowners counseling and assistance to prevent foreclosure. You can also contact the Oregon Department of Justice to learn more about their foreclosure avoidance program.

Avoid Foreclosure by Selling Your Home for Cash in Oregon

If you’re facing foreclosure, you may be able to regain your peace of mind by selling your home for cash. At Favor Home Solutions, we know you are going through a difficult time, so you can count on us to guide you through the entire process and provide you with a fair cash offer for your home.

We will take care of:

  • Closing on the date of your choice
  • Handling all the paperwork
  • Paying all the closing costs
  • And much more!

If you’re interested in hearing more about getting a free, no-obligation offer for your home, contact us today!


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