At first I was going to try to answer your questions. That ended when I read this. . .

I would assume she will claim the property as exempt. I believe they (her and ex-husband) have roughly $30K in equity in the house.
You (and more importantly, your sister) better not assume anything. The best advice you can give to your sister is to seek out the assistance of a well qualified attny.

The house IS NOT her residence and therefore probably IS NOT exempt as to her interest in the property. If your sister files a 7 without fully understanding what is or is not exempt she can kiss her interest in the home goodby. Worse yet, the Trustee can force a sale of the property and her ex is out in the cold (although he will get half of the net proceeds).

Sorry to be blunt about this but since you are not an attny and are asking such questions I have to assume you have no idea how Oregon exemptions work. Your sister should look at Oregon Revised Statute 18.395 and any other one that might apply and discuss them with a local attny before jumping into a bk.

Des.