Hard money lenders in Oregon: usury, licensing, foreclosure speed and costs
For a lender or an investor, one fact frames everything in Oregon: oregon is a collateral-only state for hard money lenders: no deficiency after either a trustee sale or a judicial foreclosure of a residential trust deed, plus a mandatory resolution conference before the sale — underwriting the as-is value is the entire credit decision.
| Foreclosure process | Non-judicial |
|---|---|
| Typical time to sale | 5 to 9 months from first notice or filing |
| Post-sale redemption | Oregon provides no right of redemption after a trustee’s sale. |
| Deficiency judgment | Barred after the usual sale |
| Usury | Oregon exempts loans above $50,000 from its usury cap (the greater of 12% or 5% above the discount rate applies to smaller loans), and business-purpose loans have additional latitude; most hard money loans exceed the threshold and are rate-unrestricted. |
| Transfer tax | Oregon’s constitution bans new real estate transfer taxes; only Washington County levies a grandfathered tax of $1 per $1,000 (0.1%). |
| Median home price (approx.) | $500,000 · property tax about 0.91% |
Oregon usury law and the business-purpose loan
Oregon exempts loans above $50,000 from its usury cap (the greater of 12% or 5% above the discount rate applies to smaller loans), and business-purpose loans have additional latitude; most hard money loans exceed the threshold and are rate-unrestricted.
Treat the cap and exemptions as a map, not as advice: exemptions depend on the borrower’s form, the loan size and the stated purpose, and penalties for getting it wrong can include loss of interest. Confirm with state counsel.
Lender licensing
Oregon requires a mortgage lender license under the Oregon Mortgage Lender Law for loans secured by residential property, and the Division of Financial Regulation applies the requirement to many business-purpose loans on one-to-four family property; exemptions are narrow, so licensing is close to mandatory for active lenders. Check licensing claims against the state regulator and NMLS, and apply the twelve questions in how to find hard money lenders.
Recovery timeline for lenders in Oregon
Oregon’s foreclosure process is non-judicial, and that single word sets the default timeline a lender here must carry. Before recording a notice of default on a residential trust deed, a lender subject to the Oregon Foreclosure Avoidance Program must notify the homeowner and participate in a resolution conference if requested (small lenders are exempt). The trustee then records the notice of default, serves and publishes the notice of sale, and may sell no sooner than 120 days after recording. Judicial foreclosure is used mainly for mortgages and title problems. A typical sale comes 5 to 9 months after the first notice or filing, longer if contested.
Oregon provides no right of redemption after a trustee’s sale. After a judicial foreclosure, the borrower may redeem within 180 days of the sale.
Oregon bars a deficiency judgment after a trustee’s sale, and separately bars deficiencies after judicial foreclosure of a residential trust deed. A lender foreclosing a residential trust deed is therefore limited to the property in either path. Full homeowner-side detail on our Oregon foreclosure page; the investor-side consequences are in hard money default.
Costs on the way in and out
Oregon’s constitution bans new real estate transfer taxes; only Washington County levies a grandfathered tax of $1 per $1,000 (0.1%). Recording fees apply statewide. Count it on both sides of a flip. Carrying costs add Oregon’s property tax at about 0.91% of value a year — near $4,550 on a median-priced $500,000 home — plus insurance and utilities for every month of the hold.
Oregon closings run through escrow companies; buyer closing costs of about 2% to 3% cover escrow, lender’s title policy, lender fees and prepaids, and sellers customarily pay the owner’s title policy.
Where investors are active in Oregon
Portland and its suburbs (Washington and Clackamas counties), Salem, Eugene, Bend and Medford are the investor markets; Portland’s ADU and middle-housing rules created small-development niches, while Bend is a high-priced second-home and short-term rental market.
Investor activity data (ATTOM and similar) shifts yearly; verify with current local comps before committing capital.
Frequently asked questions
Is hard money lending legal in Oregon?
Yes. Oregon exempts loans above $50,000 from its usury cap (the greater of 12% or 5% above the discount rate applies to smaller loans), and business-purpose loans have additional latitude; most hard money loans exceed the threshold and are rate-unrestricted. Oregon requires a mortgage lender license under the Oregon Mortgage Lender Law for loans secured by residential property, and the Division of Financial Regulation applies the requirement to many business-purpose loans on one-to-four family property; exemptions are narrow, so licensing is close to mandatory for active lenders.
How fast can a hard money lender foreclose in Oregon?
5 to 9 months is the usual range from first notice to sale; Oregon uses a non-judicial process. Oregon provides no right of redemption after a trustee’s sale.
What does a typical hard money loan cost in Oregon?
There is no Oregon-specific rate — lenders price the borrower, the deal and the state’s recovery speed. Illustratively, $425,000 at 11% with 2 points over nine months runs about $43,564 before fees. See rates, points and LTV.
Hard money guides
- How to find and vet hard money lenders: sources, questions, red flags
- What is a hard money loan? Asset-based lending explained
- Hard money vs conventional loan: speed, cost, and which deal needs which
- Hard money rates, points and LTV: typical ranges and what moves them
Also for this state: first-time home buyer programs in Oregon · foreclosure in Oregon.