Detailed Answer
When a foreclosure sale in Oregon brings in more money than what you owed, you may petition for the surplus. The exact process depends on whether the sale was judicial (a court-supervised foreclosure) or nonjudicial (a trustee’s sale under a deed of trust). Below are the general steps for each process.
1. Judicial Foreclosure (ORS Chapter 88)
- Confirm the sale and surplus amount. Obtain a statement of sale and surplus balance from the circuit court clerk.
- Draft and file your petition. Under ORS 88.740, your petition must include:
- The court case number and sale date.
- Your name, address and interest in the property (e.g., former owner or junior lienholder).
- Legal description of the property.
- The amount of funds you claim.
- A statement of other persons with a claimed interest in the surplus.
- Pay filing fees. Check with the clerk’s office for current fees or fee waivers per ORS 88.760.
- Serve notice. Serve a copy of your petition on all parties listed in your petition, including the foreclosing lender and any junior lienholders, at least 20 days before the hearing. Follow the service rules in ORCP 7.
- Attend the hearing. The court sets a hearing date under ORS 88.750. At the hearing, present proof of your claim, such as payoff figures and recorded liens.
- Receive surplus funds. If the court grants your petition, it issues an order directing the clerk to pay you the surplus balance.
2. Nonjudicial (Trustee) Sale (ORS Chapter 86)
- Request a surplus statement. After the trustee’s sale, contact the county clerk or trustee to confirm surplus funds.
- File an application with the county clerk. Under ORS 86.755, submit:
- Your contact information and interest in the property.
- Sale date and recorded trustee’s deed.
- Amount claimed.
- Serve notice and publish as required. Provide notice to other interested parties and publish in a general-circulation newspaper if the clerk directs.
- Clerk’s review and payment. The clerk reviews all claims and pays out the excess per statutory priorities.
Disclaimer: This article is for informational purposes only. It does not constitute legal advice. Consult a qualified attorney to discuss your situation and deadlines.
Helpful Hints
- Act promptly. Deadlines to claim surplus funds may be strict.
- Gather documents. Get copies of the deed of trust, sale notice and payoff statements.
- Verify priorities. Determine if other lienholders have claims on the surplus.
- Confirm fees. Filing and publication costs vary by county.
- Consider legal help. An attorney or foreclosure consultant can guide you through complex issues.