How to Stop a Foreclosure in Oregon
Reviewed by DocDraft Legal Team · Oregon · Last updated 2026-08-31
Foreclosure is the legal process a lender uses to take and sell your home after you fall behind on the mortgage. Stopping it means curing the default or reaching an agreement before the sale is final. In Oregon, most foreclosures are nonjudicial trustee's sales by advertisement under the Oregon Trust Deed Act (ORS 86.705 to 86.815), though judicial foreclosure through the courts is also available (ORS Chapter 88). The trustee first records a notice of default under ORS 86.752, then must serve a notice of sale on the grantor at least 120 days before the sale date under ORS 86.764(1), one of the longer notice periods in the country. Borrowers have a cure right under ORS 86.778 to reinstate the loan up to five days before the date last set for the sale. There is no post-sale redemption after a nonjudicial trustee's sale; redemption exists only after a judicial foreclosure (ORS 18.960 to 18.985). A deficiency is barred after a residential nonjudicial trustee's sale or a judicial foreclosure of a residential trust deed (ORS 86.797), with limited exceptions.
Find out where you stand in Oregon
Where are you in the foreclosure process?
DocDraft provides document preparation, not legal advice.
How do I stop a foreclosure in Oregon?
In Oregon, most foreclosures are nonjudicial trustee's sales by advertisement under the Oregon Trust Deed Act (ORS 86.705 to 86.815). You can stop the process by curing the default and reinstating the loan up to five days before the date last set for the sale under ORS 86.778, applying for loss mitigation, or paying the full amount owed.
What is the foreclosure timeline in Oregon?
An Oregon nonjudicial foreclosure begins when a notice of default is recorded under ORS 86.752. The trustee must then serve a notice of sale on the grantor at least 120 days before the sale date under ORS 86.764(1). That 120-day notice gives Oregon borrowers a relatively long window before the trustee's sale.
Can I reinstate my mortgage to stop foreclosure in Oregon?
Yes. Under ORS 86.778, an Oregon grantor may cure the default at any time prior to five days before the date last set for the sale by paying the amount then due, other than the accelerated balance, plus costs and fees. After cure, the obligation and trust deed are reinstated.
Can the lender pursue me for the balance after foreclosure in Oregon?
Usually no. Under ORS 86.797, an action for a deficiency may not be brought after a nonjudicial trustee's sale under the Oregon Trust Deed Act or after a judicial foreclosure of a residential trust deed. Limited exceptions apply for guarantors and certain other property or liens under subsection (4).
Oregon foreclosure law at a glance
Oregon foreclosure is governed primarily by the Oregon Trust Deed Act (ORS 86.705 to 86.815). Most home loans are secured by a trust deed and foreclosed nonjudicially through a trustee's sale by advertisement (ORS 86.752), though judicial foreclosure through the courts is also available (ORS Chapter 88). The process begins with a recorded notice of default. The trustee must then serve a notice of sale on the grantor at least 120 days before the sale date (ORS 86.764(1)), one of the longer notice periods in the country. Borrowers have a cure right under ORS 86.778 to reinstate up to five days before the date last set for the sale. There is no post-sale redemption after a nonjudicial trustee's sale; redemption exists only after a judicial foreclosure (ORS 18.960 to 18.985). A deficiency is barred after a residential trustee's sale or judicial foreclosure of a residential trust deed (ORS 86.797).
Stopping an Oregon foreclosure after a notice of default
Suppose you are four months behind on your Oregon mortgage and the trustee records a notice of default under ORS 86.752. The trustee must then serve you a notice of sale at least 120 days before the sale date (ORS 86.764(1)), giving you time to act. During that period, ORS 86.778 lets you cure the default and reinstate the loan by paying the amount then due, other than the accelerated balance, plus costs and fees, up to five days before the date last set for the sale. You could also apply for a loan modification or work with a HUD-approved counselor. Because a deficiency is barred after a residential trustee's sale under ORS 86.797, and there is no post-sale redemption, reinstating before the cutoff is the key move. Attorney review of your reinstatement or loss-mitigation paperwork is available through DocDraft.
Court Resources
Find a HUD-Approved Housing Counselor (CFPB)
Free tool to locate HUD-approved housing counseling agencies that help Oregon homeowners with loss mitigation, loan modification, and lender negotiations at no cost.
Oregon Housing and Community Services
State housing finance agency with homeownership and foreclosure-avoidance resources, including guidance and referrals for Oregon homeowners struggling with mortgage payments.
Oregon Judicial Department Self-Help
Official self-help resources of the Oregon courts, useful if your lender uses judicial foreclosure and you must respond to a court case.
Legal Aid Services of Oregon
Statewide nonprofit providing free civil legal help to income-qualified Oregon residents, including housing and foreclosure-related matters.
Relevant Laws
ORS 86.752 (Foreclosure by advertisement and sale; notice of default)
Authorizes an Oregon trustee to foreclose a trust deed by advertisement and sale after recording a notice of default, the nonjudicial route that predominates for residential deeds of trust.
ORS 86.764 (Service of the notice of sale; 120-day period)
Requires that at least 120 days before the sale, notice of the sale be served on the grantor and others, by ORCP method or by first-class and certified mail, return receipt requested.
ORS 86.778 (Cure and reinstatement of the trust deed)
Lets the grantor cure the default at any time prior to five days before the date last set for the sale by paying the amount then due, other than the accelerated balance; after cure the obligation and trust deed are reinstated.
ORS 86.797 (No deficiency after a residential trust deed foreclosure)
Bars an action for a deficiency after a trustee's sale under ORS 86.705 to 86.815 or after a judicial foreclosure of a residential trust deed, subject to limited exceptions in subsection (4).
ORS 18.960 to 18.985 (Redemption after a judicial sale)
Provides the statutory right of redemption that exists only after a judicial foreclosure. No comparable redemption period follows a nonjudicial trustee's sale in Oregon.
ORS Chapter 88 (Judicial foreclosure of mortgages and liens)
Governs Oregon's judicial foreclosure by court action, the alternative to the trustee's sale by advertisement and the only route that carries a post-sale redemption right.
Regional Variances
Oregon foreclosure rules vs national norms
Process type
Predominantly nonjudicial trustee's sales by advertisement under the Oregon Trust Deed Act (ORS 86.752). Judicial foreclosure through the courts is also available (ORS Chapter 88). Some states require judicial foreclosure; Oregon primarily uses the trustee's sale.
Notice timeline
A notice of default is recorded, then the trustee must serve a notice of sale on the grantor at least 120 days before the sale date (ORS 86.764(1)). This 120-day period is one of the longer notice windows in the country.
Reinstatement right
Strong. ORS 86.778 lets the grantor cure the default and reinstate the loan up to five days before the date last set for the sale. This late cutoff is more borrower-protective than states that end reinstatement earlier.
Redemption after sale
None after a nonjudicial trustee's sale; title passes at the sale. Redemption exists only after a judicial foreclosure (ORS 18.960 to 18.985). Some states allow months of post-sale redemption even in nonjudicial cases; Oregon does not.
Deficiency judgment
Barred for homes. ORS 86.797 prohibits a deficiency action after a residential nonjudicial trustee's sale or a judicial foreclosure of a residential trust deed, with limited exceptions in subsection (4) for guarantors and certain other property or liens.
Non-judicial vs judicial foreclosure in Oregon
Nonjudicial trustee's sale (the common path)
Conducted out of court by a trustee under the Oregon Trust Deed Act (ORS 86.752). The 120-day notice of sale, the ORS 86.778 cure right up to five days before the sale, no post-sale redemption, and the ORS 86.797 residential deficiency bar all apply.
Judicial foreclosure (the alternative path)
Filed as a lawsuit and decided by a court under ORS Chapter 88. Slower and less common. It is the only route that carries a post-sale redemption right (ORS 18.960 to 18.985). A borrower served with a summons and complaint must respond by the stated deadline or risk a default judgment.
Suggested Compliance Checklist
Confirm whether your foreclosure is nonjudicial or judicial
As soon as you fall behind or receive any notice days after startingMost Oregon foreclosures are nonjudicial trustee's sales by advertisement under the Oregon Trust Deed Act (ORS 86.752), handled out of court. Judicial foreclosure through the courts is also possible (ORS Chapter 88). Knowing which type you face sets your deadlines and whether any post-sale redemption right exists.
Read the notice of default and calendar the 120-day notice of sale
Immediately upon receiving the notice of default or notice of sale days after startingThe recorded notice of default starts the process under ORS 86.752, and the trustee must serve a notice of sale at least 120 days before the sale date under ORS 86.764(1). Note the sale date, calendar backward, and mark the five-day-before-sale cure cutoff under ORS 86.778.
Contact your servicer and apply for loss mitigation or a loan modification
As soon as possible after the notice of default days after startingAsk your loan servicer about a loan modification, forbearance, repayment plan, short sale, or deed in lieu. A hardship letter and financial documentation usually support the request, and approval can pause or stop the trustee's sale. Attorney review of your loss-mitigation package is available through DocDraft.
Cure the default up to five days before the sale
No later than five days before the date last set for the sale days after startingORS 86.778 lets you cure and reinstate by paying the amount then due, other than the accelerated balance, plus costs and fees, up to five days before the date last set for the sale. Request a written cure figure from the trustee and confirm the exact amount and deadline in writing.
Consult a HUD-approved housing counselor
As early as possible in the process days after startingHUD-approved housing counseling agencies assist Oregon homeowners with loss mitigation and lender negotiations at no cost. Use the CFPB counselor finder to locate one. A counselor can help you compare reinstatement, modification, and other options before the trustee's sale date.
Respond in writing if your lender uses judicial foreclosure
By the deadline stated on the summons days after startingIf your foreclosure is judicial under ORS Chapter 88, you are served with a summons and complaint and must respond by the deadline on the summons or risk a default judgment. Judicial foreclosure is also the only Oregon route that carries a post-sale redemption right. Attorney review of your response is available through DocDraft.
Confirm your deficiency exposure before any sale
Before agreeing to any sale, short sale, or deed in lieu days after startingUnder ORS 86.797, a deficiency action generally may not be brought after a residential trustee's sale or a judicial foreclosure of a residential trust deed, though limited exceptions apply. Verify how the bar applies to your loan before signing anything, because there is no post-sale redemption after a trustee's sale.
Keep written records of every notice, payment, and communication
Throughout the process days after startingSave the notice of default, the notice of sale, cure quotes, and all servicer correspondence, with dates. These records fix your deadlines under ORS 86.752 and ORS 86.764 and support a cure and reinstatement under ORS 86.778. Attorney review of your file is available through DocDraft.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm whether your foreclosure is nonjudicial or judicial | Most Oregon foreclosures are nonjudicial trustee's sales by advertisement under the Oregon Trust Deed Act (ORS 86.752), handled out of court. Judicial foreclosure through the courts is also possible (ORS Chapter 88). Knowing which type you face sets your deadlines and whether any post-sale redemption right exists. | - | As soon as you fall behind or receive any notice |
| Read the notice of default and calendar the 120-day notice of sale | The recorded notice of default starts the process under ORS 86.752, and the trustee must serve a notice of sale at least 120 days before the sale date under ORS 86.764(1). Note the sale date, calendar backward, and mark the five-day-before-sale cure cutoff under ORS 86.778. | - | Immediately upon receiving the notice of default or notice of sale |
| Contact your servicer and apply for loss mitigation or a loan modification | Ask your loan servicer about a loan modification, forbearance, repayment plan, short sale, or deed in lieu. A hardship letter and financial documentation usually support the request, and approval can pause or stop the trustee's sale. Attorney review of your loss-mitigation package is available through DocDraft. | - | As soon as possible after the notice of default |
| Cure the default up to five days before the sale | ORS 86.778 lets you cure and reinstate by paying the amount then due, other than the accelerated balance, plus costs and fees, up to five days before the date last set for the sale. Request a written cure figure from the trustee and confirm the exact amount and deadline in writing. | - | No later than five days before the date last set for the sale |
| Consult a HUD-approved housing counselor | HUD-approved housing counseling agencies assist Oregon homeowners with loss mitigation and lender negotiations at no cost. Use the CFPB counselor finder to locate one. A counselor can help you compare reinstatement, modification, and other options before the trustee's sale date. | - | As early as possible in the process |
| Respond in writing if your lender uses judicial foreclosure | If your foreclosure is judicial under ORS Chapter 88, you are served with a summons and complaint and must respond by the deadline on the summons or risk a default judgment. Judicial foreclosure is also the only Oregon route that carries a post-sale redemption right. Attorney review of your response is available through DocDraft. | - | By the deadline stated on the summons |
| Confirm your deficiency exposure before any sale | Under ORS 86.797, a deficiency action generally may not be brought after a residential trustee's sale or a judicial foreclosure of a residential trust deed, though limited exceptions apply. Verify how the bar applies to your loan before signing anything, because there is no post-sale redemption after a trustee's sale. | - | Before agreeing to any sale, short sale, or deed in lieu |
| Keep written records of every notice, payment, and communication | Save the notice of default, the notice of sale, cure quotes, and all servicer correspondence, with dates. These records fix your deadlines under ORS 86.752 and ORS 86.764 and support a cure and reinstatement under ORS 86.778. Attorney review of your file is available through DocDraft. | - | Throughout the process |
Frequently Asked Questions
Foreclosure is the legal process a lender uses to take and sell your home when you fall behind on the loan. In Oregon, most foreclosures are nonjudicial trustee's sales by advertisement, conducted under a trust deed and the Oregon Trust Deed Act (ORS 86.705 to 86.815), without a court case.
A nonjudicial foreclosure is handled by a trustee out of court through a sale by advertisement under the Oregon Trust Deed Act (ORS 86.752); it is the common route in Oregon. A judicial foreclosure goes through the courts under ORS Chapter 88, is slower, and is the only path that carries a post-sale redemption right.
After a notice of default is recorded under ORS 86.752, the trustee must serve a notice of sale on the grantor at least 120 days before the sale date under ORS 86.764(1). Service is made by ORCP method or by first-class and certified mail, return receipt requested. This is one of the longer notice periods nationally.
Yes. ORS 86.778 lets an Oregon grantor cure the default and reinstate the loan at any time prior to five days before the date last set for the sale. You pay the amount then due, other than the accelerated balance, plus costs and fees, and the obligation and trust deed are reinstated.
It depends on the type. After a nonjudicial trustee's sale under the Oregon Trust Deed Act, there is no post-sale right of redemption; title passes at the sale. A statutory right of redemption exists only after a judicial foreclosure under ORS Chapter 88 and ORS 18.960 to 18.985.
Usually not for a home. Under ORS 86.797, an action for a deficiency may not be brought after a nonjudicial trustee's sale under the Oregon Trust Deed Act or after a judicial foreclosure of a residential trust deed. Limited exceptions in subsection (4) apply to guarantors and certain other property or liens.
Once a notice of default is recorded under ORS 86.752, the trustee must serve a notice of sale on the grantor at least 120 days before the sale date (ORS 86.764(1)). During that window you can cure and reinstate under ORS 86.778, apply for loss mitigation, or seek other options before the trustee's sale.
Oregon homeowners can get free help from HUD-approved housing counseling agencies, which assist with loss mitigation and lender negotiations at no cost. Legal Aid Services of Oregon helps income-qualified homeowners, and Oregon Housing and Community Services offers resources. Acting early, well before the trustee's sale date, gives you the most options.
Other Oregon guides
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