There are four types of Portland foreclosure, and they are categorized by the kinds of lien on the property. They are trust deed, land sale contract, an involuntary lien and mortgage. The procedure for each one varies. Please note that the information provided is only for Portland, Oregon; laws in other states may be different.
How Foreclosure Starts
This commences with the person or company holding a lien on the real property. The lien is the legal right to hold to property as security for debt. After the foreclosure, the person must take out all their belongings and depart from the property.
In Portland foreclosure, a trust deed is a mortgage given by a real property owner to another party (the trustee). The trustee is given a power of sale for the property. This will be for the creditor until all debts are fully paid.
The trust deed is most commonly used by banks. The party holding the lien goes to court because the owner is unable to pay. The end result is the property will be auctioned off. If the amount is not sufficient to cover the debt, the lien holder can collect the remaining amount from the owner in cash.
Land Sale Contracts
This is an agreement between the buyer and seller of the real property. In Portland foreclosure laws, the seller will provide the buyer a deed upon full payment of the property. If the amount is not paid, the seller may sue the buyer for the unpaid amount, attorney fees and foreclosure expenses.
A mortgage is similar to the trust deed except there is no trustee. In this agreement, the owner provides a lien on the property as collateral for the money owed. The foreclosure process and rules are similar to those of a trust deed.
Involuntary liens cover those set on the property without the owner’s consent. These include, but not limited to, liens filed for unpaid tax or lien filed by property workmen or by the creditors.
These Portland foreclosure cases are handled differently, depending on the circumstances. However, the outcome is similar; the property is sold to the higher bidder in an auction.
Ways to Get out of Foreclosure
The most effective way to deal with foreclosure is to confront the issue early on. When people get behind payments, the lender will send a foreclosure notice warning. If you get this notice, set up a meeting with your lender so you can negotiate a deal.
Under Oregon laws, the lender is obligated to meet and discuss the matter with you. Write a letter detailing the reasons why you cannot meet your payments. You can also ask the lender if it is possible for you to get a loan workout agreement. You can also ask if it’s possible for the monthly payments to be included in the principal.
Portland foreclosure laws provide legal options for the owner and lender, whatever foreclosure type it may be. By recognizing your options you can avail of your rights as provided for in state laws.