When The House Is Foreclosed
ORS 86.764 and ORS 86.778 — 120 days' notice of a trustee's sale, and a cure up to five days before it
In Oregon, a trustee may foreclose a trust deed by advertisement and sale, without a lawsuit, only if the trust deed and any assignments are recorded, there is a default, a notice of default electing to sell has been recorded in the county, and no action to recover the debt is pending. For a residential trust deed, the beneficiary also has to record a certificate of compliance or an exemption from the foreclosure avoidance process.
120 days' notice of the sale. After the notice of default is recorded, and at least 120 days before the sale, notice of the sale has to be served, or mailed by both first class and certified mail with return receipt requested, to the grantor, any successor in interest of record, and anyone with a later lien or interest of record.
A cure up to five days before the sale. The grantor, a successor in interest, or a junior lienholder may cure the default at any time prior to five days before the date last set for the sale. Where the default is missed payments, the cure is paying what would then be due had there been no default, plus the costs of enforcing it, with trustee's and attorney fees on a residential trust deed capped at a total of $1,000 or what was actually charged, whichever is less. The trustee then dismisses the proceedings and the loan is reinstated as if there had been no acceleration.
After the sale. The trustee's sale ends the interests of everyone who was given notice, and there is no right to redeem the property from the buyer afterward. An action for a deficiency, the part of the debt the sale did not cover, may not be brought after a trustee's sale, or after a judicial foreclosure of a residential trust deed, with the narrow exceptions the section sets out.
The contents of the notice of sale, the foreclosure avoidance process, a tenant's rights after a sale and judicial foreclosure are set out in other sections not reproduced here. Whether a particular foreclosure followed the statute is a question for a licensed Oregon attorney.
Sources for this section (4)
- ORS 86.752 — Foreclosure by advertisement and sale
- ORS 86.764 — Notice of sale for certain persons
- ORS 86.778 — Discontinuance of foreclosure proceedings after cure of default
- ORS 86.797 — Effect of sale
Legal information, not legal advice. Verified as of October 2026. Applying it to a particular situation is the work of a licensed Oregon attorney.