Oregon Renters’ Rights if Your Home Faces Foreclosure

If you’re renting a home in Oregon and your landlord is facing foreclosure, it’s essential to understand your legal protections as a tenant. The prospect can be stressful, but Oregon law and federal rules offer important rights to help you stay informed and avoid unexpected eviction. This article breaks down your key rights, explains official forms, and shares the steps you can take if your rental faces foreclosure—using plain language and official Oregon sources.

Your Legal Protections as a Renter During Foreclosure

Foreclosure is when a mortgage lender takes back a property due to missed payments by the owner (landlord). As a renter in Oregon, you are protected by both Oregon state foreclosure laws and the federal Protecting Tenants at Foreclosure Act (PTFA)^[1]. This means you have certain rights to stay in your home, receive proper notice, and avoid sudden eviction.

Key Rights for Oregon Renters Facing Foreclosure

• Advance Written Notice: The new owner (often a bank) must give you at least 90 days’ written notice before eviction.
• Honoring Existing Leases: If you have a fixed-term lease (e.g., one-year lease), you can usually stay until the lease ends, except in rare circumstances.
• Eviction Process: The new owner must follow Oregon’s regular court eviction process. You cannot be locked out without a court order.
• Security Deposit: The new owner is responsible for returning your security deposit. Get documentation showing payments and move-in/out condition.

In most cases, you do not have to leave immediately after the foreclosure sale. You must be given official notice and allowed time to respond.

How Foreclosure Affects Your Rental Agreement

If your home is sold at foreclosure:

• Your existing rental agreement may transfer to the new owner.
• If you are on a month-to-month agreement, the new owner must provide a 90-day notice before terminating tenancy.
• If you have a long-term lease, you may be able to stay until the end of your term unless the new owner plans to live in the property as their main home (in which case they can give a 90-day notice, per PTFA).

Official Forms and Notices You Might Receive

• Notice to Terminate Tenancy (ORS 105.120 Notice):
  • When is it used? If you are being evicted after a foreclosure, the new owner must serve you with this notice at least 90 days before you have to move out.
  • Example: You receive a "Notice to Terminate Tenancy" from the new property owner, stating that you have 90 days before you must vacate following a foreclosure sale.
  • View the official Notice to Terminate Tenancy form (PDF)
• Summons and Complaint for Eviction (FED - Forcible Entry and Detainer):
  • When is it used? If you don’t move out after receiving a notice, the new owner may file an eviction lawsuit. You’ll be served with a "Summons and Complaint" by the court.
  • Example: If you do not leave by the end of the notice period, you will receive a summons to appear in court and defend your right to stay.
  • View Oregon eviction court forms

Responding to these forms promptly is critical to protecting your rights and avoiding automatic eviction.

What Should Renters Do If They Learn of a Foreclosure?

If you suspect or learn that your landlord is facing foreclosure:

• Keep paying your rent. Only stop if a court orders otherwise or you get a notice from the new legal owner.
• Ask the new owner for proof of ownership before paying rent to them.
• Carefully read any notices or court papers you receive. Note deadlines to respond.
• Gather copies of your lease, payment records, and any communications.
• Protect your security deposit by documenting the property’s condition.
• Consider contacting Oregon Legal Aid or a local housing counselor for specific advice.

Oregon Residential Tenancy Tribunal and Laws

• Oregon Judicial Department handles landlord-tenant eviction cases and can provide information on the legal process.
• The main state tenancy law is the Oregon Residential Landlord and Tenant Act (ORS Chapter 90).
• For foreclosure-specific statutes: ORS Chapter 86 (Foreclosure of Mortgages and Trust Deeds)

FAQ: Oregon Renters and Foreclosure

1. Can I be forced to move out immediately after foreclosure?
   No. Oregon law and federal law require at least 90 days' written notice before you must move out.
2. What happens to my security deposit if the property changes ownership?
   The new owner becomes responsible for your security deposit. Keep documentation to support your claim when you move out.
3. Do I still need to pay rent during the foreclosure process?
   Yes. You should continue paying rent as usual until notified otherwise by the new legal owner.
4. How do I know if the person collecting rent is the new owner?
   You can ask for written proof of ownership. Do not pay rent to anyone until they provide this documentation.
5. What if I have a long-term lease?
   In most cases, a long-term lease is still valid unless the new owner intends to make the property their primary residence. Even then, you must get a 90-day notice.

Need Help? Resources for Renters

• Oregon Residential Landlord and Tenant Act (ORS Chapter 90)
• Oregon Judicial Department: Landlord-Tenant Information
• Oregon Housing and Community Services – Renter Information
• Oregon Law Help (Legal Aid and Tenants’ Rights Assistance)

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1. [1] See: Protecting Tenants at Foreclosure Act of 2009 (current as of 2024)
2. Oregon Residential Landlord and Tenant Act: ORS Chapter 90
3. Foreclosure Law: ORS Chapter 86
4. Official Landlord/Tenant forms: Oregon Courts – Forms
5. Eviction notice and process: Oregon Judicial Department: Landlord-Tenant

Key Takeaways:

• Renters in Oregon have at least 90 days’ notice before they must move out after a foreclosure.
• Your lease usually remains valid during and after a foreclosure; new owners must follow official eviction rules.
• Respond quickly to any notices and seek help if you face foreclosure-related eviction.

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