In the majority titles in Oregon remain in trust until such time as the underlying loan is paid in full, only after this is done is the deed transferred to ownership of the borrower. This is why lenders in this state are allowed to process foreclosure by the non-judicial method. The primary instrument of security is a Deed of Tile which contains a power of sale clause. Because of this a trustee is appointed to ensure the foreclosure process takes place should a borrower default on their home loan.
Mortgages which do not contain a power of sale clause are also allowed, but as non-judicial foreclosure is a faster process, lender prefer to issue a deed of trust rather than a mortgage. In the case of a borrower who is in default having a mortgage agreement, a foreclosure would have to be processed through the courts by judicial means.
The state of Oregon effectuates foreclosure primarily in the foreclosure by advertisement methodology. No court action is involved but the lender is required to follow stringent notice requirements. This is to ensure that the borrower is not taken advantage of in the foreclosure process. Once this process is begun it takes approximately 180 days to finalize provided the action is not being contested and the borrower is not appealing for bankruptcy. The borrower does have the right to contest any kind of foreclosure action, and considering this is the timeline for a non-judicial process it is a very long time.
The notice of default must be lodged with the county court and the borrower must have the notice delivered to them personally 120 days before the scheduled date of sale. Rights of redemption in Oregon are allowed for 180 days after the sale of the property and deficiency judgments are permitted.