Oregon Counties
State Auction Process in Oregon
Oregon is a tax deed state. In a tax deed state, the actual property is sold after tax foreclosure, as opposed to a tax lien state, where a lien is sold against the property, giving the owner the right to collect the back taxes and earn interest.
Tax deed sale in Oregon
In Oregon, tax deed sales are conducted when a property owner fails to pay their property taxes. These sales offer the opportunity for interested buyers to acquire properties with delinquent tax obligations. When property taxes are not paid by the deadline, typically on November 15th of each year, the property becomes delinquent.
Tax Lien Foreclosure Process: Oregon follows a tax lien foreclosure process, where the county government places a lien on the delinquent property. The lien represents the amount of unpaid taxes, penalties, and interest.
After the tax lien is filed, there is a redemption period during which the property owner has the opportunity to pay the delinquent taxes and redeem the property. The redemption period in Oregon is typically one year from the date the lien was filed.
If the property owner does not redeem the property within the redemption period, the county government may proceed with a tax deed sale. The sale is typically conducted through a public auction, where the property is sold to the highest bidder.
The tax deed sale is usually held at the county courthouse or another designated location. The auction is open to the public, and interested buyers can participate by bidding on the properties. If you are the highest bidder and win the auction, you are required to provide payment immediately or within a specified timeframe, typically within 24 to 48 hours. The payment is typically required in the form of cash or a cashier’s check.
Once the payment is received, the county government issues a tax deed to the winning bidder. The tax deed transfers the ownership of the property to the buyer, subject to any existing liens or encumbrances.
Foreclosure Process in Oregon
In Oregon, lenders may foreclose on deeds of trust or mortgages in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.
The borrower has 180 days from the date of the sale to redeem the property in this kind of foreclosure by paying the purchase price plus interest, the foreclosure costs, and the buyer’s operation and maintenance costs. To redeem, the borrower must give the sheriff a notice that is submitted no later than two days and no later than thirty days in advance.
Non-Judicial Foreclosure
When a power of sale clause appears in a mortgage or deed of trust, the non-judicial foreclosure procedure is used. In a deed of trust or mortgage, a “power of sale” clause allows the borrower to pre-approve the sale of the property to settle the outstanding balance of a loan in the case of failure. When a power of sale is granted to the lender in a deed of trust or mortgage, the lender or their agent—commonly known as the trustee—may use that power to sell the property. The “Power of Sale Foreclosure Guidelines” contains rules for this particular form of the foreclosure procedure.
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
- A notice of default must be recorded in the county where the property is located and the borrower and/or occupant of the property must be served with a copy of the notice at least 120 days before the scheduled foreclosure sale date.
- A copy of the notice must be published once a week for four (4) successive weeks, with the last notice being published at least twenty (20) days prior to the foreclosure sale.
- Said notice must contain a property description, recording information on the trust deed, a description of the default, the sum owing on the loan, the lender’s election to sell and the date, time and place of sale.
- The borrower may cure the default at any time prior to foreclosure by paying all past due amounts, plus costs.
- The sale must be at auction to the highest bidder for cash. Any person, except the trustee, may bid at the sale, which takes place between 9:00 am and 4:00 pm at the location stated in the notice of record.
- The sale may be postponed for up to 180 days from the original sale date if at least twenty (20) days advance notice is given, by mail, to the original recipients of the notice.
A deficiency judgment cannot be obtained through a non-judicial foreclosure but may be pursued when other foreclosure methods are used.
Quick Facts
– Judicial Foreclosure Available: Yes
– Non-Judicial Foreclosure Available: Yes
– Primary Security Instruments: Deed of Trust, Mortgage
– Timeline: Typically 180 days
– Right of Redemption: Yes
– Deficiency Judgments Allowed: Yes