There are two types of foreclosure processes in Oregon:
- In a judicial foreclosure, the lender files a lawsuit asking a court to order the sale of your property. The proceeds of the sale are applied to your loan. In some cases, the court may grant the lender a judgment against you for the remaining balance of the loan. If your lender files a judicial foreclosure, you will be served with a summons and complaint that requires you to file an answer in court within 30 days. If you fail to respond in time, you may lose your right to contest the foreclosure. After the court enters judgment, the sheriff will sell the property at public auction. Homeowners facing judicial foreclosure should immediately seek legal advice from an attorney.
- In a non-judicial foreclosure, a trustee conducts a sale of the property without court oversight and according to state law. The trustee must record a Notice of Default and serve you with a Notice of Sale 120 days before the sale date. You have until 5 days before the sale to bring the loan current.
If you have any questions about the types of foreclosure, talk to a foreclosure prevention counselor or an attorney.