Oregon has a post-sale statutory right of redemption for judicial foreclosures, which would allow a party whose property has been foreclosed to reclaim that property 180 days after the sale by making payment in full of the sum of the unpaid loan plus costs and by submitting notice to the Sheriff not more than 30 and not less than 2 days in advance of the redemption.

​

DERF Properties can purchases these rights from the homeowner for an agreed sum.  Even if your home has already been foreclosed on and auctioned off, there is still time to take advantage of this opportunity to put money in your pocket.

​

Under Oregon law, the former owners (and some other parties as well) could get the home back after the foreclosure by "redeeming" it -- that is, by paying the purchase price that was paid at the foreclosure sale, plus interest and expenses. However, the redemption right is only valid if the foreclosure goes through what is called a "judicial foreclosure".

​

We’ll describe below what the different types of foreclosures are and how Oregon’s redemption laws might affect your ability to feel comfortable with your home purchase.

​

Oregon Foreclosures May Be Carried Out in Either of Two Different Ways

Residential foreclosures in Oregon are often "nonjudicial," a procedure under which the lender does not have to go through state court to foreclose. Judicial foreclosures, in which the lender files a lawsuit in court, are also possible in Oregon.

​

How does the distinction between a non-judicial and a judicial foreclosure matter to you as a homeowner or potential purchaser at a foreclosure sale? As you’ll find out below, if the foreclosure is nonjudicial, the former homeowner won’t have the right to redeem the property.

​

No Redemption Period Following a Non-judicial Foreclosure in Oregon

In Oregon, there is no redemption period after a non-judicial foreclosure (Or. Rev. Stat. § 86.797(1)).

​

Right to Redeem After a Judicial Foreclosure in Oregon

If the foreclosure is judicial, the homeowners may redeem the home within 180 days after the sale (Or. Rev. Stat. § 88.106, § 18.964).

​

How Much the Foreclosed Homeowners Must Pay to Get the House Back

If the homeowners get the right the redeem, they would have to pay the amount that was paid at the foreclosure sale, plus interest and any amounts you paid for taxes, maintenance, or prior liens (Or. Rev. Stat. § 18.966).

​

Redemption By IRS or Other Parties

It’s also possible for some other party to redeem the home after a foreclosure, such as other creditors who had liens on the house or the IRS (if the agency held a federal tax lien on the home). This doesn’t happen very frequently either.

The IRS gets 120 days (or the allowable period under state law, whichever is longer) to redeem. If the IRS considers redeeming the house, it will send you a notice beforehand.

​

​

​

​