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JD, Lawyer
Category: Real Estate Law
Satisfied Customers: 1335
Experience:  Over 11 years litigation experience including eminent domain and real estate disputes
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I understand that in the state of Oregon, if you walk away

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I understand that in the state of Oregon, if you walk away from your home the mortgage co. can get a default judgment against you for the difference of what they eventually sell the property for and what you owe. But can they attach or lien other property, such as another house or cars or for that matter any other thing that you own free and clear? and if they did get a judgment can you file bankruptcy on that judgment.

Lenders in Oregon have two basic options to foreclose on real estate.


1) Non-judicial foreclosure ("power of sale") which is quicker and easier but does not permit the bank to obtain a deficiency judgment (except in second or subsequent mortgages)


2) Judicial foreclosure which is a more traditional approach that takes a bit more time. The judicial foreclosure is a lawsuit that involves a public sale of the foreclosed home and permits a deficiency judgment to be entered against the homeowner.


If a deficiency judgment is taken, the debtor's assets may be levied against in several ways. (Liens may be placed on property, wages may be garnished, accounts may be executed upon, etc...) Bankruptcy is always an option, however with new bankruptcy standards you will likely find the debt is no dischargeable and the court will place you on a payment plan to satisfy the debt (though the payments should be reasonable).


Bankruptcy, foreclosure and walking away from a home is rarely a good plan of action. Your attorney may have experience with this lender and know their tendencies on seeking deficiency judgments. I suggest obtaining another local opinion before taking action.


Remember there other options such as short sales, renegotiating the mortgage, refinance, etc... If you are in trouble you should talk to your lender about potential solutions before things get too bad.


Please reply if I can help further.



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