Commercial real estate foreclosures can often be a challenging process for lenders. This was not always the case, however, and many lenders in Oregon used to get more benefit out of servicing bad loans or foreclosing quickly. When the Oregon Trust Deed Act was established in 1959, it was designed to encourage lenders to facilitate good loans for both parties.
Oregon is experiencing increased commercial foreclosures, and navigating the complexities of non-judicial foreclosure in Oregon can be daunting for lenders. Total Lender Solutions, a foreclosure expert with over 15 years of experience, can assist lenders in maximizing their recoveries on defaulted loans.
Read more about the Oregon Trust Deed Act and Oregon nonjudicial foreclosure laws.
An Overview of Oregon Commercial Foreclosure Laws
The Oregon Trust Deed Act allows lenders to foreclose commercial real estate nonjudicially. This act benefits both lenders and borrowers by ensuring that lenders can protect their assets without involving the state court and by protecting borrowers from predatory lending practices.
Oregon is unique because nonjudicial foreclosures involving residential trust deeds require lenders to communicate openly with borrowers about ways to settle any breaches before beginning the foreclosure process.
Notice of Default Stage
Upon default, the lender must wait until the borrower is delinquent for 120 days before issuing a Notice of Default alongside an election to sell. The lender must additionally record any assignment of the deed of trust and record any appointments of a successor trustee. Oregon has a one-action rule, meaning that lenders may not pursue both judicial and nonjudicial options for recovering their assets.
In a residential trust deed, lenders are required to offer mediation to the borrower. The lender must send a Notice of Mediation, and the mediation service provider must send the borrower and lender a scheduling notice to schedule a mediation date. Mediation must take place between 45 and 90 later.
Notice of Sale Stage
The Notice of Sale stage begins when the trustee delivers the notice to the borrower, either in person or posted in a conspicuous place on the property. In residential trust deeds, a Danger Notice must be sent before the Notice of Sale is mailed or served.
The Notice of Sale will set the date for the trustee sale at least 145 days out. During this period, the lender must publicly post the foreclosure sale in a local newspaper for four consecutive weeks, with the last publication being at least 20 days before the sale.
Sale Phase and Post-Sale
If the borrower has not made their loan current by the time of the sale date, the property is sold to the highest bidder on the date specified in the Notice of Sale.
Common delays that may occur during the foreclosure process include the borrower filing for bankruptcy or filing a temporary restraining order, which can delay the process until the stay expires or the case is dismissed. The trustee may postpone the trustee sale date for one or more periods that total no more than 180 days after the original sale date.
How Total Lender Solutions Guides Lenders Through the Oregon Trust Deed Act
If you are a lender who must foreclose on an Oregon commercial property due to delinquency or a breach of contract, seek out a trusted partner to help complete the process efficiently and under state and federal compliance.
The Team at Total Lender Solutions is intimately familiar with the nonjudicial process in Texas, California, Arizona, Nevada, Oregon, Missouri, and Washington. We work as an extension of lender teams looking to maximize recoveries on defaulted loans. We transform the complicated process of foreclosing commercial real estate into clear resolutions for institutional and private lenders.
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