Oregon Homestead Laws

Oregon’s homestead exemption protects up to $158,300 in a homeowner’s equity, or up to $316,700 for married couples filing joint bankruptcy. This amount is adjusted annually, so filers should check with a bankruptcy attorney to ensure they use the correct figures. Surviving spouses are also eligible for the exemption.

Exempt property means the homeowner’s primary residence and can include:

• A single-family home
• A condo or townhome
• A manufactured dwelling or mobile home
• A “floating home” or houseboat

The Homestead Act includes any real property on which the residence sits, but it cannot be public land. Oregon law limits the exempted real property to 160 acres if the homestead is located in a rural area or “one block” in a city or town. The value of the property is more important than its size. It’s doubtful a property owner would claim less than the statutory amount in a five-block plot of land that was their primary residence and also fell below the statutory equity amount.

How To Get the Homestead Exemption

There is no official requirement to obtain a homestead exemption. The exemption is automatic upon the purchase of the property.

The home must be the primary residence and must be occupied by the owner and their family. Temporary absences for travel will not affect the exemption status.

Sales Exemption Protection

The exemption protects proceeds of the sale of the property for up to one year. Homeowners must use the funds to purchase a new homestead property.

Exceptions to Homestead Exemptions

Oregon state exemptions do not protect homeowners in all cases. For debts and liens related to child support or spousal support obligations, the exemption is capped at $40,000 for individual judgment debtors and $50,000 for joint debtors. The changes to the exemption law did not affect this figure. The homestead exemption will only protect up to $40,000 in criminal cases that include victim restitution.

The exemption will not apply to:

• State and federal tax liens or garnishment
• Mortgages and perfected secured property liens
• Mechanic’s and contractor liens
• Seller’s rights under a land sale contract

Courts usually will not order a forced sale on a judgment lien amount of $3000 or less at the time of entry.

Get Legal Advice From an Oregon Bankruptcy Attorney

Oregon state homestead exemptions differ from federal exemptions. When filing for bankruptcy, you should consult an Oregon bankruptcy attorney to ensure you have the correct financial information for your filing. If you have other real estate or property tax concerns, discuss your issues with an Oregon real estate attorney.