In short
Oregon lenders can foreclose a trust deed without going to court, by advertisement and sale (ORS 86.710). The lender must serve a notice of sale at least 120 days before the auction (ORS 86.764), and you can cure the default up to five days before the sale (ORS 86.778). After the sale you cannot redeem the home (ORS 86.797). Statutes read as of October 2026.
Judicial or non-judicial?
Both exist. A trust deed “may be foreclosed by advertisement and sale” or, at the beneficiary’s option, “by the beneficiary as provided by law for the foreclosure of mortgages” (ORS 86.710). The second route is a court case under ORS 88.010. This guide focuses on the first, the non-judicial route. A lender’s choice of route changes the rules on redemption, as the table below shows.
Timeline step by step
| Step | What the law says | Source |
|---|---|---|
| Loan is 120+ days past due | Under federal rules a servicer generally may not make the first foreclosure notice or filing before the loan is more than 120 days delinquent | 12 CFR 1024.41(f)(1)(i) |
| Resolution conference | A lender covered by the program must first request a conference with you, before recording a notice of default or filing suit | ORS 86.726(1) |
| Notice of default | The trustee or lender records it in each county where the property lies, with proof that the conference step is complete or exempt | ORS 86.752 |
| Notice of sale | Served or mailed at least 120 days before the sale to the borrower, successors and later lienholders | ORS 86.764 |
| Notice to the borrower | A plain-language warning notice, in at least 14-point type, goes by first class and certified mail | ORS 86.756 |
| Cure deadline | Pay what is due, plus costs and fees, up to five days before the date last set for sale | ORS 86.778 |
| Lender’s affidavit | Recorded at least five days before the sale, stating that it told you if you were found ineligible for a foreclosure avoidance measure | ORS 86.748(2) |
| Auction | Held between 9 a.m. and 4 p.m. in the county, to the highest bidder for cash | ORS 86.782(1) |
| Postponements | The sale may be postponed for periods totaling up to 180 days from the original date | ORS 86.782(2) |
The statute also lists conditions the lender must meet before it can use this route, including a default and a recorded notice of default (ORS 86.752).
Right of redemption
After a trustee’s sale, a person whose interest was foreclosed “may not redeem the property from the purchaser” (ORS 86.797(1)). Your chance to keep the home is before the sale, by curing the default.
To reinstate a residential trust deed, you pay the amount due under the loan terms (leaving out what would not be due had you not defaulted), plus the lender’s enforcement costs and a fee cap: $1,000 in total for trustee and attorney fees, or the amount actually charged if less (ORS 86.778). Any person entitled to cure may ask a court to review the reasonableness of the fees.
A court-supervised sale works differently. Property sold on execution after a judicial foreclosure can be redeemed as property sold at an execution sale (ORS 88.106). A judgment debtor has 180 days after the date of sale to redeem (ORS 18.964).
Deficiency judgments
If the lender uses a trustee’s sale, a deficiency action “may not be brought” afterward. The same bar applies to a judicial foreclosure of a residential trust deed, which cannot include a money award against the borrower (ORS 86.797(2)). The lender remains free to foreclose other property that secures the same debt (ORS 86.797(4)). For a trust deed that is not residential, a judicial foreclosure judgment may allow execution for a shortfall (ORS 86.797(3)). If your loan is a mortgage rather than a trust deed, ask a lawyer how ORS 88.103 applies.
What happens to tenants
A buyer at the sale must give occupants written notice of the change of ownership within 30 days (ORS 86.782(5)). The statutory notice tells bona fide tenants they may stay for 60 days after a written termination notice if they have a fixed-term lease, or at least 30 days if they rent month to month or week to week (ORS 86.771).
Help for homeowners in default
- Resolution conference. Oregon’s Foreclosure Avoidance Program gives you a structured meeting with your lender and a trained facilitator. You can request one yourself if no notice of default has been recorded, but first you need written certification from a housing counselor (ORS 86.726(3)). Counseling is free. The program manager, Mediation Case Manager, takes calls at 855-658-6733. If you are low income, all but $50 of the program fee may be waived (OHCS, October 2026).
- Legal help. Oregon Law Help is at 503-684-3763 or 800-452-7636. The State Bar’s Lawyer Referral Service offers a $35 first consultation (OHCS).
- Scams. The Oregon Department of Justice Consumer Protection hotline is 877-877-9392.
- Federal rules. If you submit a complete loss-mitigation application more than 37 days before a sale, the servicer generally may not move for judgment or conduct the sale until it resolves your application (12 CFR 1024.41(g)).
Related: homeowners insurance and how to verify a license in Oregon.
Frequently asked questions
Do Oregon foreclosures go through court?
Usually not. A lender can sell the home through the trustee without a court case (ORS 86.710), though it may choose a judicial foreclosure.
How long does an Oregon foreclosure take?
The law sets one fixed period: notice of sale must be served at least 120 days before the auction (ORS 86.764). Before that come the delinquency period and the resolution-conference step, so the whole timeline is longer.
Can I get my house back after the auction?
No. After a trustee’s sale there is no right to redeem (ORS 86.797(1)). You can cure the default up to five days before the sale (ORS 86.778).
Can the lender sue me for the rest of the debt?
Not after a trustee’s sale or a judicial foreclosure of a residential trust deed (ORS 86.797(2)). Other property securing the same debt can still be foreclosed.
Who can help me for free?
Housing counselors approved through OHCS provide free counseling, and the Foreclosure Avoidance Program runs the resolution conference (OHCS).
Compare with the other states: Foreclosure by state.
More Oregon guides
- Closing costs in Oregon: what buyers and sellers pay
- Real estate transfer tax in Oregon: none, with one old exception
- Oregon property tax: Measure 50, rates and who gets relief
- Seller disclosure in Oregon: what sellers must tell buyers
- Do you need a real estate attorney to close in Oregon?
- Home prices in Oregon and Portland: median value and trend
- First-time home buyer programs in Oregon and Portland
- How to verify a real estate license in Oregon
- Natural hazards and home insurance in Oregon
- Buying a rental property in Oregon: tenant rules
Sources
- ORS 86.705 to 86.815, Trust deeds (Oregon Legislature, ORS chapter 86) (consulted October 13, 2026)
- ORS 88.010 to 88.120, Foreclosure of mortgages and liens (Oregon Legislature, ORS chapter 88) (consulted October 13, 2026)
- ORS 18.964, Time for redemption (Oregon Legislature, ORS chapter 18) (consulted October 13, 2026)
- Oregon Foreclosure Avoidance Program (Oregon Housing and Community Services) (consulted October 13, 2026)
- 12 CFR 1024.41, Loss mitigation procedures (Electronic Code of Federal Regulations) (consulted October 13, 2026)