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Oregon

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Oregon — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-02.

Oregon is a tax-deed-to-the-county state with no tax-lien certificates and no public investor sale at the delinquency stage. Real property becomes subject to foreclosure once three years have elapsed from the earliest delinquency (ORS 312.010). The county tax collector and district attorney bring a single in rem foreclosure proceeding against all delinquent parcels (ORS 312.050), the court enters a judgment of foreclosure (ORS 312.090), and the parcels are sold directly to the county for the taxes and interest (ORS 312.100). The former owner and other interest-holders then have a two-year redemption period running from the judgment (ORS 312.120); redemption requires the judgment amount + statutory interest (1⅓%/month under ORS 311.505(2)) + a 5% penalty + a fee. If not redeemed, the property is deeded to the county and all redemption rights terminate on execution of the deed (ORS 312.200). There is no investor; the county is the sole purchaser.

For decades Oregon let the county keep the entire property as satisfaction of a much smaller tax debt — the textbook “home-equity theft” that the U.S. Supreme Court condemned in tyler-v-hennepin-county (598 U.S. 631 (2023), decided May 25, 2023). Oregon reformed post-Tyler via HB 2089 (2025) (Enrolled HB 2089, 83rd Leg., 2025 Reg. Sess.), which added new ORS 312.500–312.560 (sections 3–6 and 8–10 of the Act, made part of ORS ch. 312 by § 12). Counties must now sell foreclosed property — primary residences listed with a real estate broker, else a public high-bid auction — and return the surplus (sale value less allowable costs) to the former owner as unclaimed property delivered to the State Treasurer. The reform is retroactive to claimants who received the one-year redemption-expiration notice (ORS 312.125) on or after May 25, 2023 (§ 13). The statute deliberately defines “claimant” to exclude creditors, other interest- holders, and assignees, and voids any assignment of a surplus claim except protective assignments (bankruptcy/POA/guardianship) — a hard bar on third-party surplus-recovery agents taking an assignment (§ 9(5)(b)).

Mortgage debt is foreclosed predominantly non-judicially by trustee’s sale under the Oregon Trust Deed Act (ORS 86.705–86.815), with a 120-day minimum notice, a reinstatement right before sale, no post-sale redemption, and no deficiency (ORS 86.797). Judicial foreclosure (ORS ch. 88) carries a 180-day post-sale redemption (ORS 88.106; ORS 18.964) but bars deficiencies on residential trust deeds (ORS 86.797(2)).

0. Identity & Classification

  • Recording unit: county (count: 36). [Source: Oregon has 36 counties — general knowledge; official count flagged in needs_verification.]
  • Tax sale type: tax deed to the county (tax_deed). No lien certificates; no investor purchase. The court orders parcels sold directly to the county (ORS 312.100); after redemption lapses the county takes a deed (ORS 312.200). [Source: oregonlegislature.gov / oregon.public.law — ORS 312.100, 312.200]
  • Tax foreclosure process: judicial in rem — a court proceeding by the tax collector and district attorney against the property itself (ORS 312.050, 312.090). [Source: oregon.public.law — ORS 312.050]
  • Mortgage foreclosure process: both — predominantly non-judicial trustee’s sale (ORS 86.705–86.815); judicial foreclosure available (ORS ch. 88).
  • Selling authority: county (the county is the foreclosure purchaser; the county tax collector runs the ORS ch. 312 process and the county disposes of property post-foreclosure under ORS 312.500–312.560); trustee (deed-of-trust sale); sheriff (judicial / execution sale).
  • Statutory home: Tax-lien foreclosure — ORS ch. 312 — https://www.oregonlegislature.gov/bills_laws/ors/ors312.html ; surplus — ORS 312.500–312.560 (HB 2089, 2025) ; property-tax collection / interest — ORS ch. 311 — https://oregon.public.law/statutes/ors_311.505 ; trust-deed foreclosure — ORS 86.705–86.815 — https://www.oregonlegislature.gov/bills_laws/ors/ors086.html ; judicial mortgage foreclosure — ORS ch. 88 — https://www.oregonlegislature.gov/bills_laws/ors/ors088.html
  • Tyler v. Hennepin compliance: reformed_post_Tyler. Pre-2025 Oregon kept the entire foreclosed property regardless of equity (home-equity theft). HB 2089 (2025) created a sale-and-surplus-return regime (ORS 312.500–312.560), returning surplus to the former owner via the State Treasurer; retroactive to one-year redemption notices on/after May 25, 2023 (the date Tyler was decided). [Source: Enrolled HB 2089 §§ 5–13; corroborated by Association of Oregon Counties and Reason.]

1. Tax Sale Mechanics

  • What is sold: a deed to the county (not a certificate, not an investor deed). The court orders the parcels “sold directly to the county” for the taxes and interest (ORS 312.100); no public investor bidding occurs at this stage. [Source: oregon.public.law — ORS 312.100]
  • Bidding method: none at foreclosure — the county is the statutory purchaser. Competitive bidding occurs only at the back-end disposition (broker listing or ORS 312.520-type public high-bid auction under HB 2089 § 6). [Source: Enrolled HB 2089 § 6]
  • Interest / penalty: delinquent property taxes accrue interest at 1⅓% per month (16% per annum) under ORS 311.505(2); this interest is carried into the foreclosure list and continues to accrue during redemption (ORS 312.110, 312.120). Redemption adds a 5% penalty on the judgment amount (ORS 312.120(2)). [Source: oregon.public.law — ORS 311.505; ORS 312.120]
  • Minimum bid composition (post-foreclosure disposition, HB 2089 § 6): at the high-bid auction, the bid must exceed the outstanding taxes and other allowable costs, with a minimum starting bid of two-thirds of fair market value (§ 6(3)(c)(C)); if that fails, a second auction may start at the outstanding taxes/costs (§ 6(4)). [Source: Enrolled HB 2089 § 6]
  • Sale frequency / typical month: annual foreclosure cycle. The foreclosure list is published and the application for judgment filed on the first publication date (counties commonly publish in mid-August); judgment ~30 days later. [Source: oregon.public.law — ORS 312.060; county procedure — Jackson County: list published Aug. 16, judgment ~30 days after]
  • Venue / platforms: county tax-collector office (foreclosure); post-foreclosure disposition via licensed real estate broker (primary residences) or public high-bid auction that “may include an online bidding process” (HB 2089 § 6(3)(e)). [Source: Enrolled HB 2089 § 6]
  • Registration & deposit: set by each county’s auction terms (no statewide lien auction). [County-level detail flagged.]
  • Subsequent taxes (“subs”): not applicable in the lien-certificate sense; the county holds the parcel through redemption, and taxes that would have been due during the redemption period are added as an allowable cost deducted before surplus (HB 2089 § 8(4)(b)). [Source: Enrolled HB 2089 § 8]

2. Right of Redemption → see right-of-redemption

  • Pre-sale right: the owner may pay the delinquent taxes at any time before judgment to avoid foreclosure; once a parcel is on the list, paying the oldest delinquent year (and prior years) halts proceedings as to that parcel. [Source: county procedure — Jackson County; ORS 312.010]
  • Post-sale period: two years from the date of the judgment of foreclosure, unless sooner redeemed (ORS 312.120(1)). Reduced to 30 days after a county waste/abandonment determination (ORS 312.122). [Source: oregon.public.law — ORS 312.120, ORS 312.122]
  • Who may redeem: “any person having an interest in the property at the date of the judgment of foreclosure, or any heir or devisee of such person, or any person holding a lien of record on the property, or any municipal corporation having a lien on the property” (ORS 312.120(2)). [Source: oregon.public.law — ORS 312.120(2)]
  • Amount formula: full judgment amount + interest as provided by law (1⅓%/month, ORS 311.505(2)) + a 5% penalty of the total judgment amount + a fee ($50 before notice; the greater of$50 or actual title-search/expense costs after notice) (ORS 312.120(2),(5)). [Source: oregon.public.law — ORS 312.120]
  • Premium to certificate holder: N/A — Oregon has no certificate holder; the 5% penalty and statutory interest run to the county.
  • Procedure: redemptioner pays the county tax collector (cash, cashier’s check, or money order; no partial payments) within the two-year window. At least one year before redemption expires, the tax collector must mail the ORS 312.125 notice (certified + first-class) to owners and lienholders of record, warning of forfeiture and of the right to claim a surplus (ORS 312.125, as amended by HB 2089 § 2). [Source: oregon.public.law — ORS 312.125; Enrolled HB 2089 § 2]
  • Extinguishment: all rights of redemption terminate on execution of the deed to the county (ORS 312.200); no confirmation of the deed is required. [Source: oregon.public.law — ORS 312.200]
  • Special tolling: persons under disability per ORS 12.160 are excepted from the conclusive-notice presumption (ORS 312.216); SCRA and bankruptcy operate as federal overlays. See bankruptcy-automatic-stay, scra-protections.

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

  • Belongs to: the former owner (the owner of the property as of the date it was sold to the county on foreclosure), or that owner’s estate/heirs/devisees/successor (HB 2089 § 5(1) “claimant”; § 5(2) “former owner”). Creditors, other interest- holders, and assignees are expressly NOT claimants (§ 5(1)(b)). [Source: Enrolled HB 2089 § 5]
  • Claim waterfall:
    1. County deducts allowable costs (HB 2089 § 8(4)): the ORS 312.090 judgment amount + post-judgment interest; taxes/interest that would have accrued during redemption; ORS 275.275(1)(a)–(c) costs; municipal-corporation lien claims (ORS 275.130); ORS 312.990 penalties or nuisance-abatement costs; and reasonable foreclosure/disposition fees (legal, notice, staff time, court filing, appraisal, real-estate commission, auction fees) in lieu of the ORS 312.120 penalty/fee.
    2. Surplus = sale value − allowable costs (HB 2089 § 8(1)) goes to the former owner / claimant.
    3. A non-claimant (e.g., a lienholder) “may claim the surplus based upon a valid lien against the property or a debt of the claimant” (§ 9(5)(a)) — i.e., lienholders recover through the unclaimed-property process, not as the primary claimant. [Source: Enrolled HB 2089 §§ 8, 9]
  • Filing venue: a claim “must be made with the State Treasurer” in the manner of ORS 98.392 and 98.396 (Unclaimed Property / Estates Administration Program) (HB 2089 § 9(2)). The county delivers the surplus to the State Treasurer for deposit as unclaimed property (§ 10). Claims are filed at the Oregon State Treasury Unclaimed Property program (unclaimed.oregon.gov). [Source: Enrolled HB 2089 §§ 9, 10]
  • Claim deadline: the surplus is unclaimed property under ORS 98.302–98.436 (HB 2089 § 10), so it is reclaimable by the former owner indefinitely under the Uniform Unclaimed Property framework; there is no hard claim cutoff that forfeits the money to the state. The county must file the report and deliver the surplus within 30 days after the surplus is determined (§ 10(2)(b)); the surplus amount is itself determined within 60 days of depositing gross sale proceeds (§ 8(2)). Separately, the former owner may seek a writ of review of the county’s surplus determination in circuit court under ORS 34.010–34.100 (§ 3(2)(b)(D)). [Source: Enrolled HB 2089 §§ 3, 8, 10]
  • Escheat: surplus enters the Unclaimed Property and Estates Fund held by the State Treasurer (ORS 98.352, as amended by HB 2089 § 11); under Oregon’s unclaimed-property regime the owner’s claim is not time-barred, so there is no true escheat that forfeits the equity. [Source: Enrolled HB 2089 § 11]
  • Documentation required: for a deceased former owner whose estate is not probated, the claim must include the death certificate, will (if any), a statement no probate / small-estate affidavit is being filed, identity and share of each beneficiary, and signatures of all beneficiaries (HB 2089 § 9(3)(b)). An heir who occupied the property as a primary residence >1 year is presumed authorized to receive the surplus for all heirs absent objection (§ 9(3)(c)). [Source: Enrolled HB 2089 § 9]
  • Third-party recovery (governs whether a surplus-recovery agent may operate):
    • fee_cap_pct: effectively 0% for assignment-based recovery — “any purported assignment of a claim to the surplus is void” except protective assignments (bankruptcy, POA, custodianship/guardianship) (HB 2089 § 9(5)(b)). Separately, where a private party operates the disposition auction, its fee is capped at 3% of the surplus (§ 6(3)(c)(B)) — but that is a county-engaged auction operator, not a claim-recovery agent.
    • licensing_required: N/A in the recovery-agent sense — the model is foreclosed by the assignment bar and the narrow “claimant” definition rather than by licensing a finder. Claims go through the State Treasury unclaimed-property process directly.
    • assignment_of_claim_allowed: No — void by statute except protective assignments (§ 9(5)(b)).
    • cooling_off_period: N/A (no assignment-based recovery is permitted).
    • contract_disclosure_rules: N/A under ch. 312; a finder agreement assigning the claim is void regardless of disclosures.
    • prohibited_practices: taking an assignment of a surplus claim; a non-owner creditor/assignee posing as the “claimant”; collecting a contingency on the surplus via assignment. [Source: Enrolled HB 2089 §§ 5, 9]
    • citation: HB 2089 (2025) §§ 5, 6(3)(c)(B), 9(5)(a)–(b) (codified ORS 312.500–312.560); ORS 98.392, 98.396.
  • Notice to former owner required? Yes — (1) the ORS 312.125 redemption- expiration notice now warns of the surplus right (HB 2089 § 2); and (2) within 60 days after a surplus could arise, the county must mail a surplus notice to the claimant, the Treasury Estates Administration Program, DOR, DOJ, and any municipality (HB 2089 § 3). [Source: Enrolled HB 2089 §§ 2, 3]

▸ For Investors / Operators — Oregon foreclosed property is sold only by the county (no investor lien certificate, no investor purchase at the delinquency stage); a private buyer acquires title from the county after the two-year redemption period via the HB 2089 § 8 disposition (broker listing for primary residences, else a ⅔-FMV-minimum public auction). Before committing capital, weigh the two-year redemption window (§2/2b — reduced to 30 days for waste/abandonment under ORS 312.122), the path to marketable/insurable title (§5b — the county deed is “title of utmost stability” under ORS 312.214, barred from challenge after two years by ORS 312.230; Oregon has no MRTA), and which liens survive (§7b — municipal local-improvement assessments survive the county deed under ORS 312.270, plus the IRS § 7425 120-day redemption). Note the surplus belongs to the former owner, and any assignment of a surplus claim is void (§3b — HB 2089 § 9(5)(b)).

▸ For Former Owners — When a foreclosed Oregon property is later sold by the county for more than the taxes and allowable costs, the surplus belongs to the former owner (the owner as of the date the property was sold to the county) under HB 2089 §§ 5, 8 — retroactive to one-year redemption notices received on or after May 25, 2023. The claim is filed with the State Treasurer through the unclaimed-property process (ORS 98.392/98.396), is reclaimable indefinitely with no forfeiture deadline, and the county must mail you a surplus notice within 60 days. Creditors, other interest-holders, and assignees are not “claimants.”

4. Mortgage Foreclosure

  • Process: both. Most residential loans use a trust deed foreclosed non-judicially by trustee’s sale (“foreclosure by advertisement and sale,” ORS 86.705–86.815); traditional mortgages and elected actions use judicial foreclosure (ORS ch. 88). [Source: oregon.public.law — ORS 86.797; nolo.com summary]
  • Timeline (non-judicial trustee’s sale):
    • Notice of default recorded and the sale date set not less than 120 days after notice (ORS 86.756/86.764; nolo summary “no less than 120 days”). [Source: nolo.com; statute section flagged for direct pull]
    • Service/mailing of the notice of sale to the grantor and interested parties; publication; the sale is a public auction by the trustee.
  • Reinstatement right: Yes — the grantor (or others entitled) may cure the default and reinstate at any time before the trustee’s sale by paying the arrears, costs, and fees (ORS 86.778). [Source: nolo.com summary citing ORS 86.778; statute pull flagged.]
  • Redemption after sale:
    • Non-judicial trustee’s sale: none — Oregon provides no post-sale redemption after a trustee’s sale. [Source: nolo.com; oregonrealtors.org]
    • Judicial foreclosure / execution sale: 180 days post-sale (ORS 88.106; ORS 18.964(2)); a lien claimant’s redemption window is 60 days (ORS 18.964(3)). [Source: oregon.public.law — ORS 18.964; ORS 88.106]
  • Deficiency judgment: barred after a trustee’s sale (“an action for a deficiency may not be brought after a trustee’s sale”) and after judicial foreclosure of a residential trust deed (ORS 86.797(2)); limited exceptions for guarantors and non-residential collateral (ORS 86.797(4)). [Source: oregon.public.law — ORS 86.797]
  • Surplus distribution (mortgage): trustee’s-sale proceeds pay sale costs, the beneficiary’s debt, then junior lienholders by priority, then the grantor (general rule; ORS 86.797/86.764 disposition-of-proceeds). [Exact disposition section flagged for direct pull.]
  • Sale officer: trustee (non-judicial); sheriff (judicial / execution sale).

5. Sale Procedure Playbooks

County tax-foreclosure procedure → see treasurer-sale

  1. Taxes go three years delinquent (ORS 312.010); tax collector lists the parcel.
  2. Within set dates the collector publishes the foreclosure list in a county newspaper and mails notice (certified + first-class) to owners of record (ORS 312.040, as amended by HB 2089 § 1), and files the application for judgment (ORS 312.060).
  3. Court enters the judgment of foreclosure (ORS 312.090) and orders the parcels sold to the county (ORS 312.100); the two-year redemption period begins.
  4. ≥1 year before redemption expires, the collector mails the ORS 312.125 notice (now including the surplus right) (HB 2089 § 2); the county also notifies DOR/DOJ/municipality (§ 4).
  5. If unredeemed, the property is deeded to the county (ORS 312.200); all redemption rights end on execution of the deed. Title vests free of liens except municipal local-improvement assessments (ORS 312.270).
  6. Disposition (HB 2089 § 6): the county may retain for public use / transfer to a nonprofit; primary residences are listed with a real estate broker at a price = highest reasonably expected; otherwise a public high-bid auction (min. bid ⅔ FMV) is held after three failed broker attempts or a 12-month listing.
  7. Surplus is determined within 60 days, costs deducted (§ 8), and the surplus delivered to the State Treasurer within 30 days as unclaimed property (§ 10).

Sheriff / judicial mortgage sale → see sheriff-sale

  1. Lender files a judicial foreclosure complaint (ORS ch. 88).
  2. Decree of foreclosure; sheriff conducts the execution sale.
  3. 180-day redemption runs post-sale (ORS 18.964); 60-day window for lien claimants; deficiency barred on residential trust deeds (ORS 86.797).
  • Notice requirements: tax foreclosure — newspaper publication + certified and first-class mail to owners of record (ORS 312.040, HB 2089 § 1); due diligence to locate owners (ORS 312.040(2)); ORS 312.125 redemption-expiration notice ≥1 year out. Trustee’s sale — recorded notice + 120-day notice + publication + service. [Source: oregon.public.law — ORS 312.040, 312.125; Enrolled HB 2089 §§ 1–2]
  • Upset bid / confirmation: tax deed to county requires no confirmation (ORS 312.200). Judicial sales follow ORS ch. 88 / execution-sale confirmation.
  • Payment terms: redemption — cash/cashier’s check/money order, no partial payments (county practice). Auction — county auction terms.
  • Deed issued: county tax deed (vests title free of liens except municipal local-improvement assessments, ORS 312.270); a bona fide purchaser then buys from the county by deed reciting consideration (HB 2089 § 8(3)(b)); trustee’s deed (non-judicial); sheriff’s deed (judicial). [Source: oregon.public.law — ORS 312.270; Enrolled HB 2089 § 8]

6. Due Process & Notice → see due-process-notice

  • Standard: Oregon’s in-rem scheme combines a conclusive presumption of notice (every owner “conclusively shall be deemed to have taken notice” of assessment, due dates, liens, and the in-rem foreclosure process, and has a continuing duty to investigate) (ORS 312.216) with a declared public policy of title stability (ORS 312.214). At the same time, ORS 312.040 / 312.125 require mailed (certified + first-class) notice to owners and lienholders of record plus publication and due diligence to locate owners — aligning with mullane-v-central-hanover (“reasonably calculated”) and mennonite-v-adams (mailed notice to record lienholders). [Source: oregon.public.law — ORS 312.216, 312.214, 312.040, 312.125]
  • Required attempts: publication + certified and regular first-class mail to each owner of record (ORS 312.040(1)); due-diligence record/database search (ORS 312.040(2)); for lienholders/corporations, mail to the address shown in records or the registered agent (ORS 312.125(4)–(6)). [Source: Enrolled HB 2089 §§ 1–2]
  • Consequence of defective notice: voidable, narrowed by statute. A tax deed is not void for “irregularities, omissions or defects” unless the record owner was actually misled to the owner’s injury, and challenges are time-barred after two years (ORS 312.230). For a city treasurer’s failure to give a requested mortgagee/lienholder notice, the deed is void until notice is given and for 30 days thereafter (ORS 312.216-related city provision). [Source: oregon.public.law — ORS 312.230; search snippet on city-treasurer void rule — flagged for exact section.]
  • Leading cases: otto-and-harkson-v-josephine-county (statutory bar / void-deed challenge), tyler-v-hennepin-county (surplus takings). Additional notice-specific Oregon appellate cases flagged in needs_verification.

7. Title & Marketability

  • Deed warranty level: the county tax deed conveys title free from all liens and encumbrances except municipal local-improvement assessments (ORS 312.270); the subsequent county-to-purchaser deed is a statutory conveyance reciting consideration (HB 2089 § 8(3)(b)). [Source: oregon.public.law — ORS 312.270]
  • Marketable immediately? Largely yes by statute — ORS 312.214 declares a policy of “utmost stability” for county tax-foreclosure title, and ORS 312.230 bars most challenges after two years; in practice title insurers may still require curative steps. [Source: oregon.public.law — ORS 312.214, 312.230]
  • Quiet title required? Generally not required to vest title (no confirmation needed, ORS 312.200), but a quiet-title action may be used to clear specific clouds; ORS 312.230 itself functions as a statute of prescription. [Source: oregon.public.law — ORS 312.200, 312.230]
  • SOL to challenge deed: two years from the judgment of foreclosure and sale to the county (ORS 312.230); a challenger must pay into court the judgment amount + taxes/penalties (or judgment + 6% if claiming against a county grantee) with the first pleading. [Source: oregon.public.law / search snippet — ORS 312.230]
  • Title insurance availability: generally available given the statutory title-stability policy and two-year bar, sometimes after a curative period. [Industry practice — flagged.]
  • Common defects: defective ORS 312.040 / 312.125 notice where the owner was actually misled (ORS 312.230); missed lienholder/mortgagee notice; chain-of-title gaps; municipal local-improvement assessments surviving the deed (ORS 312.270).

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
tyler-v-hennepin-county2023surplus, due_processA county may not keep the surplus equity above the tax debt when it forecloses and sells a home; retention is an unconstitutional taking under the Fifth Amendment (598 U.S. 631). This is the constitutional basis for Oregon’s HB 2089 (2025) surplus-return reform.https://supreme.justia.com/cases/federal/us/598/22-166/
otto-and-harkson-v-josephine-county1956sale_procedure, due_process, redemptionOregon Supreme Court tax-foreclosure decision (207 Or. 199); owner sought to void a county tax deed for missing publication/proof-of-notice and to redeem, but the statutory limitations/curative scheme (now ORS 312.230) governed the validity of the foreclosure deed. Illustrates Oregon’s strong title-stability bar.https://law.justia.com/cases/oregon/supreme-court/1956/207-or-199-3.html

Topic-coverage note: redemption, due_process, sale_procedure, and surplus are each touched by the two verified cases above (Tyler = surplus/due_process; Otto & Harkson = sale_procedure/redemption/due_process). Additional Oregon-specific verified cases for each tag are an open gap (see Module 11); the statutory citations carry the doctrinal load in the meantime.

9. Edge Cases (state-specific notes)

  • bankruptcy-automatic-stay — A bankruptcy filing stays the ch. 312 foreclosure / deeding and can cure delinquent taxes through a plan; the two-year ORS 312.120 period is tolled by the automatic stay (federal overlay; statute silent). HB 2089 expressly permits an assignment of a surplus claim “in a bankruptcy proceeding” (§ 9(5)(b)).
  • federal-tax-lien-redemption — The IRS holds a 120-day redemption right after a sale that discharges a federal tax lien (26 U.S.C. § 7425) — federal overlay.
  • heirs-property — Heirs/devisees of the former owner are “claimants” for surplus (HB 2089 § 5(1)(a)(B)); an heir who occupied the home >1 year is presumed authorized to receive surplus for all heirs absent objection (§ 9(3)(c)).
  • scra-protections — SCRA may toll redemption / postpone sale for active-duty servicemembers (federal overlay).
  • Waste / abandonment (reduced redemption) — a county may shorten redemption to 30 days after a noticed hearing where the property is subject to waste, or unoccupied ≥6 months with substantial depreciation (ORS 312.122).
  • Municipal local-improvement assessments — these survive the county tax deed (ORS 312.270), unlike other liens which are extinguished.
  • Void vs. voidable — Oregon treats most tax-deed defects as non-fatal unless the owner was actually misled (ORS 312.230); contrast strict-compliance states. See void-vs-voidable.
  • Assignment bar (third-party recovery) — surplus-claim assignments are void except protective ones (HB 2089 § 9(5)(b)); see third-party-recovery-rules.

10. Operations

Who this page is for

▸ For Investors / Operators — Start with §1 (the county is the sole foreclosure purchaser — no lien certificate, no investor sale at delinquency; competitive bidding occurs only at the HB 2089 § 6 back-end disposition), §2/2b (the two-year redemption right and that Oregon has no transferable certificate to acquire mid-period), §5b (path to marketable title — ORS 312.214 “utmost stability” policy, the two-year ORS 312.230 prescription bar, no MRTA, quiet title under ORS 105.605 only to clear specific clouds), §7b (liens that survive — municipal local-improvement assessments under ORS 312.270 and the IRS § 7425 120-day redemption), and §11b (broad entity eligibility, no statewide land bank).

▸ For Former Owners — Start with §3 (the surplus — when the county resells for more than taxes and allowable costs, the residual belongs to you under HB 2089 §§ 5, 8; claims are filed with the State Treasurer as unclaimed property and are reclaimable indefinitely; retroactive to redemption notices on or after May 25, 2023), §2 (redemption — paying the judgment amount plus interest, the 5% penalty, and the fee within two years to recover the property), and §5c (grounds, the ORCP 79 bond, and procedure for an emergency motion to halt a scheduled sale).

11. Meta

  • sources:
  • needs_verification:
    • Official source for Oregon’s 36-county count (used general knowledge).
    • Direct statute text of ORS 311.505(2) (1⅓%/month) and ORS 312.230 (2-year SOL; pay-in requirement) — currently confirmed via search snippets, not a clean fetch of the section text (Justia/public.law returned 403 on direct fetch).
    • Exact trustee’s-sale notice sections (ORS 86.756/86.764) and ORS 86.778 reinstatement — corroborated by nolo, not pulled from the statute directly.
    • Disposition-of-proceeds section governing trustee’s-sale surplus distribution (exact ORS number).
    • The “city treasurer” void-deed-for-missing-lienholder-notice rule — confirm the exact ORS section/text (appeared in a search snippet on ORS 312.216).
    • Otto & Harkson precise holding language (deed void vs. barred) — full opinion text not fetched (403); citation/year/court and tax-foreclosure subject confirmed.
    • Additional Oregon-specific verified appellate cases for redemption, surplus (post-HB 2089), sale_procedure, and notice/due-process beyond the two cited.
    • Whether ORS 312.500–312.560 are the final codified section numbers for HB 2089 §§ 3–6, 8–10 (public.law/Justia had not yet ingested them at retrieval).
    • [Module 2b] Oregon appellate case confirming or denying that the statutory redemption right can be sold outright to an unqualified third party.
    • [Module 3b] Whether a pure contingency-fee agreement (non-assignment) with a surplus recovery agent is enforceable post-HB 2089; no post-effective-date case found.
    • [Module 3b] How Treasury resolves simultaneous lienholder claims in practice (no Treasury guidance yet published).
    • [Module 3b] Confirm no separate filing deadline attaches to surplus registered as unclaimed property (UPA silent on time-bar for this category).
    • [Module 5b] Exact Oregon title-underwriter (OTIRO, First American, Old Republic) seasoning requirements for county tax-deed properties.
    • [Module 5c] Bond amount typical range for Oregon foreclosure TROs (no published benchmark found).
    • [Module 5c] Specific county court timelines for emergency TRO processing (rural courts may differ from Portland-area).
    • [Module 5c] Staffordshire Investments case citation for completed-trustee’s-sale void-where-no-default principle (confirmed via search snippet only).
    • [Module 7b] Oregon county practice for IRS § 7425 notice in the in-rem ORS ch. 312 process (do counties give 25-day notice to the IRS?).
    • [Module 7b] No Oregon appellate case directly addressing CERCLA lien survival through ORS ch. 312 county tax deed — flag as open.
    • [Module 7b] Bank of New York Mellon Trust Co. v. Sulejmanagic (Or. 2021) full citation and source_url (confirmed via CFS Blog summary only; direct court opinion not retrieved).
    • [Module 7b] Whether ORS 312.270 “local improvement assessments” exception encompasses code-enforcement / blight liens in specific municipal-code contexts.
    • [Module 7b] HB 4064 (2026) final disposition and effect on HOA-lien survival post-county-deed.
    • [Module 10b] Confirm ORS 312.120 is silent on redemptioner paying post-judgment taxes separately (vs. folded into HB 2089 § 8 allowable costs).
    • [Module 11b] Confirm absence of any ORS ch. 275 or ORS ch. 271 restriction on entity purchases of county tax-foreclosed property.
    • [Module 11b] Confirm no ORS ch. 312 explicit insider-bidder ban beyond the HB 2089 § 6 broker-qualification rule.
  • open_questions:
    • For pre-May-25-2023 foreclosures (notice before that date), is there any retroactive surplus remedy, or only a Tyler constitutional claim? HB 2089 § 13 excludes them.
    • How do junior lienholders practically recover from surplus given they are not “claimants” (§ 9(5)(a)) — through the unclaimed-property claim queue?
    • Does the 3% private-auction-operator fee (§ 6(3)(c)(B)) create any opening for a compliant for-fee surplus service distinct from the void assignment model?
  • cross_links: right-of-redemption, surplus-funds, third-party-recovery-rules, tyler-v-hennepin-county, mullane-v-central-hanover, mennonite-v-adams, jones-v-flowers, treasurer-sale, sheriff-sale, due-process-notice, bankruptcy-automatic-stay, federal-tax-lien-redemption, heirs-property, scra-protections, void-vs-voidable, otto-and-harkson-v-josephine-county
  • changelog:
    • 2026-06-01 — Initial page drafted from ORS ch. 312 (foreclosure), ORS 311.505 (interest), Enrolled HB 2089 (2025) surplus reform (full text read from OLIS PDF), ORS 86.797 / 18.964 (mortgage), and county procedure (Jackson). Verified Tyler v. Hennepin (598 U.S. 631) and Otto & Harkson v. Josephine County (207 Or. 199, 1956). Reconciled with Tyler: Oregon = reformed_post_Tyler via HB 2089, retroactive to May 25 2023. Flagged surplus-claim assignment bar (§ 9(5)(b)) as key third-party- recovery rule.
    • 2026-06-02 — Applied the neutral-reference + segmented-CTA editorial voice: added the two CTA callout pairs (after §3 and a “Who this page is for” section before §11 Meta) and neutralized minor advocacy slant (“Prudent purchasers should search”). No facts, citations, links, or modules altered.

2b. Redemption Advanced

Assignability of the Statutory Redemption Right

Oregon’s ORS 312.120(2) defines who “may redeem” as: “any person having an interest in the property at the date of the judgment of foreclosure, or any heir or devisee of such person, or any person holding a lien of record on the property, or any municipal corporation having a lien on the property.” The statute is silent on explicit assignment of the redemption right to a third party who does not independently qualify. The enumerated list is widely read as exclusive — a stranger to the title who has not independently acquired an interest cannot simply purchase the redemption right and exercise it. No Oregon appellate decision has been found that squarely authorizes or prohibits assignment of the redemption right to an unqualified third party. [Source: oregon.public.law — ORS 312.120(2), retrieved 2026-06-02; no contradictory Oregon case located — needs_verification]

  • Assignable? Not expressly — the statute enumerates qualifying parties; the right does not appear freely assignable to an arbitrary third party who does not hold an independent qualifying interest.
  • Heirs/devisees: expressly included (ORS 312.120(2)) — an heir can redeem derivatively from the former owner without court approval.
  • Lienholders redeeming and gaining an additional lien: when a mortgagee or other lienholder of record pays taxes or redeems, the official receipt constitutes an additional lien on the property collectible as part of their original security (ORS 312.160). [Source: oregon.public.law — ORS 312.160, retrieved 2026-06-02]
  • Purchase mechanism for heirs: informal succession — an heir or devisee may redeem directly; no court approval required.
  • needs_verification: No Oregon appellate case confirming or denying that the redemption right can be sold outright to an unqualified purchaser has been located.

Equitable Redemption (Distinct from Statutory)

Oregon’s tax-foreclosure system is statutory, not common-law equity. ORS 312.070 gives interested persons the right to answer the foreclosure petition and assert any defense; that window to halt the foreclosure (effectively pre-judgment equitable redemption) closes when the judgment of foreclosure is entered. After judgment the only right that survives is the statutory two-year period under ORS 312.120. There is no recognized separate equitable redemption right after the in-rem judgment; the strong title-stability policy (ORS 312.214) and two-year SOL (ORS 312.230) displace common-law equity. [Source: oregon.public.law — ORS 312.070, 312.214, 312.230; retrieved 2026-06-02]

  • Equitable redemption distinct from statutory? No — Oregon merges them; the right to contest or redeem pre-judgment (ORS 312.070 answer) is the functional analog, and the post-judgment right is purely statutory (ORS 312.120).
  • Available pre-sale only? Yes — the ORS 312.070 window closes at judgment; no separate equitable redemption persists post-judgment.

Installment Redemption

ORS 312.120 requires payment of the full judgment amount + interest + 5% penalty in one payment; it makes no provision for installment redemption. [Source: oregon.public.law — ORS 312.120, retrieved 2026-06-02]

  • Installment redemption permitted? No.

Assignment of the County Tax Deed / Certificate Mid-Period

Oregon has no tax-lien certificate; the county is the sole purchaser at foreclosure. The county holds the property through the two-year redemption period (ORS 312.120) and may not transfer title to a private party until after redemption expires. Post-expiration the county deeds title to the purchaser under HB 2089 § 8. The county’s statutory interest during the redemption period is an in-rem judgment-sale ownership position, not a transferable certificate. [Source: Enrolled HB 2089 § 8; ORS 312.200; retrieved 2026-06-02]

  • Purchaser may assign mid-period? Not applicable — there is no lien certificate and no private-purchaser deed during the redemption period in Oregon.

3b. Surplus Advanced

Claim Assignability

HB 2089 § 9(5)(b) is unambiguous: “any purported assignment of a claim to the surplus is void” except for:

  1. An assignment in a bankruptcy proceeding (meeting 11 U.S.C. § 101 et seq.);
  2. An assignment pursuant to a power of attorney (POA) or
  3. An assignment pursuant to a court order (guardianship or conservatorship). [Source: Enrolled HB 2089 § 9(5)(b), retrieved 2026-06-02 via OLIS]
  • Full assignment permitted? No — void by statute.
  • Assignment vs. fee agreement: The distinction is moot in Oregon for the tax-sale surplus — because even a contingency-fee-based assignment of the claim itself is void; a recovery agent may only assist the former owner in filing but cannot take an assignment of the claim. Whether a pure contingency fee agreement that does not assign the claim (i.e., attorney-client / finder-fee) is enforceable is an open question not yet litigated post-HB 2089.
  • Fee cap on assignments? N/A — assignments are void.
  • Statute: HB 2089 § 9(5)(b) (codified ORS 312.500–312.560 pending confirmation).

Statute of Limitations on Surplus Claims

The surplus is routed as unclaimed property under ORS 98.302–98.436 (HB 2089 § 10). Oregon’s unclaimed-property regime does not extinguish the owner’s right to claim; the Uniform Unclaimed Property Act framework Oregon has adopted does not impose a hard forfeiture deadline. There is effectively no statute of limitations that bars the former owner from claiming. However:

  • The county must determine the surplus within 60 days of depositing gross sale proceeds (§ 8(2)).

  • The county must deliver the surplus to the State Treasurer within 30 days after determination (§ 10(2)(b)).

  • The former owner may seek a writ of review of the county’s surplus determination in circuit court under ORS 34.010–34.100 within the statutory writ-of-review window (§ 3(2)(b)(D)); ORS 34.040 imposes a 60-day limit from the decision date for writs of review. [Source: Enrolled HB 2089 §§ 8, 10; ORS 34.040, retrieved 2026-06-02]

  • SOL period: Indefinite (unclaimed property framework; no forfeiture deadline).

  • Trigger: Surplus determined by county (not the sale date).

  • Writ-of-review SOL: 60 days from county’s surplus determination (ORS 34.040).

  • needs_verification: Confirm no separate filing deadline attaches when surplus is registered as unclaimed property (Oregon UPA silent on time-bar for this category).

Competing Claimant Procedure

HB 2089 defines “claimant” narrowly — only the former owner (individual or entity that held title at foreclosure) and their heirs, devisees, and successors qualify (§ 5(1)(a)). Creditors, assignees, and lienholders are expressly not claimants (§ 5(1)(b)). A non-claimant with a valid lien “may claim the surplus based upon a valid lien against the property or a debt of the claimant” (§ 9(5)(a)) — but they do so through the State Treasury’s unclaimed-property process, not as the primary claimant. [Source: Enrolled HB 2089 §§ 5, 9(5)(a), retrieved 2026-06-02]

  • Filing race? No — the claimant definition forecloses competition; only the former owner qualifies as the primary claimant.
  • Interpleader used? Not the designated mechanism; competing lienholders use the unclaimed-property lien-claim process.
  • Priority rules: Former owner first; valid lienholders second via unclaimed-property claim (§ 9(5)(a)).
  • needs_verification: How the Treasury resolves simultaneous lienholder claims in practice (no regulatory guidance yet located post-HB 2089 effective date).

Deceased Owner Procedure

HB 2089 § 9(3) provides a specific procedure when the former owner is deceased and the estate has not been probated:

  • Claim must include: (a) death certificate; (b) copy of will (if any); (c) statement that no probate or small-estate affidavit is being filed; (d) identity and fractional share of each beneficiary; (e) signatures of all beneficiaries.

  • Shortcut for occupying heir: an heir who occupied the property as a primary residence for more than one year is presumed authorized to receive the surplus on behalf of all heirs, absent a written objection (§ 9(3)(c)). [Source: Enrolled HB 2089 § 9(3), retrieved 2026-06-02]

  • Probate required first? No — the statute provides a direct no-probate heir claim pathway.

  • Personal representative has standing? Yes — if an estate is opened, the PR acts on behalf of the estate.

  • Direct heir claim permitted? Yes — via the § 9(3) procedure without probate.

Fraudulent Conveyance Exposure

Because surplus claim assignments are void (§ 9(5)(b)), there is no valid “transfer” of the claim that creditors could attack under Oregon’s Uniform Voidable Transactions Act (ORS ch. 95). A void assignment has no legal effect and cannot be ratified by performance. If a former owner purports to assign the claim while insolvent, the assignment is a nullity — creditors have no transfer to avoid, but they also receive no benefit since the assignment voids.

If — in a hypothetical future allowed structure — a surplus claim were assignable, Oregon’s UVTA (ORS 95.230–95.240) would allow creditors to void the assignment within:

  • 4 years of the transfer (or 1 year after discovery) for actual-fraud transfers (ORS 95.280(1)(a));

  • 4 years for constructive-fraud transfers (ORS 95.280(1)(b));

  • 1 year for certain insider transfers (ORS 95.280(1)(c)). [Source: oregon.public.law — ORS 95.280, retrieved 2026-06-02]

  • Assignment voidable by creditors? Moot — assignment is void by statute, not merely voidable.

  • Applicable statute: ORS ch. 95 (UVTA); HB 2089 § 9(5)(b).

  • Notes: The protective-assignment exceptions (bankruptcy, POA, guardianship) are themselves court-supervised or fiduciary-supervised, limiting fraudulent-conveyance risk.

Surplus Claimant Notice

HB 2089 § 3 requires the county, within 60 days after the date on which a claimant could first make a claim on the surplus, to mail notice to: (a) the claimant; (b) the Oregon Treasury Estates Administration Program; (c) the Department of Revenue; (d) the Department of Justice; and (e) any municipal corporation with a lien on the property. [Source: Enrolled HB 2089 § 3, retrieved 2026-06-02]

  • Court must notify lienholders? Yes — county must notify DOJ and any municipal lienholder.
  • Method: Certified mail / first-class mail.
  • Timeline: Within 60 days of claimant-eligibility date.

5b. Title Advanced

Quiet Title: When Required vs. Optional

Oregon’s tax-deed title is substantively strong: ORS 312.214 declares the county’s tax deed “title of utmost stability” and ORS 312.230 bars most challenges within two years of the judgment as both a limitations statute and a statute of prescription. A quiet title action is not required to vest title after a county tax foreclosure (ORS 312.200 — no confirmation needed). However, a quiet-title suit under ORS 105.605 may be used (and is often advisable) to clear:

  • Specific clouds not extinguished by the deed (e.g., disputed municipal local- improvement assessments, HOA liens of uncertain status);

  • Title defects traceable to defective ORS 312.040 / 312.125 notice where the owner was actually misled (ORS 312.230);

  • Any challenge raised within the two-year ORS 312.230 window. [Source: oregon.public.law — ORS 105.605, 312.200, 312.214, 312.230; retrieved 2026-06-02]

  • When required: Not required to vest title; recommended when a cloud exists or notice defect is suspected.

  • Action type: Judicial (equity suit in circuit court, ORS 105.605).

  • Court: Oregon circuit court in the county where the property is located.

  • Typical timeline: 3–6 months for uncontested; longer if contested.

  • Typical cost: $3,000–$10,000+ in attorney fees (industry estimate; county filing fees per Oregon circuit court fee schedule).

  • Cures all pre-sale defects? A successful ORS 105.605 judgment establishes paramount title; combined with ORS 312.230’s prescription effect, it resolves pre-sale clouds.

  • Citation: ORS 105.605; ORS 312.214; ORS 312.230.

Deed Seasoning

Oregon title insurers generally view the two-year ORS 312.230 bar as the critical seasoning threshold. After two years from the foreclosure judgment, the prescription effect of ORS 312.230 extinguishes almost all third-party challenges, making the title more insurable. In practice, many underwriters will write immediately post-deed but with exceptions; after the two-year bar has run, coverage is typically available without major exceptions. [Source: industry practice — confirmed via search snippets from Oregon title professionals; direct underwriting manual pull flagged needs_verification]

  • Insurers require seasoning? Typically yes, tied to the ORS 312.230 two-year bar.
  • Typical years: 2 (the ORS 312.230 prescription period).
  • Rationale: Until the two-year bar runs, a challenger who was actually misled by defective notice (ORS 312.230) or who was under disability (ORS 312.216) could file; the risk of a void-deed attack (though narrow) is the underwriter’s concern.
  • needs_verification: Confirm exact underwriting manuals (Oregon Title Insurance Rating Organization, First American, Old Republic) for their specific Oregon tax-deed seasoning requirements.

Title Insurance

  • Immediate availability? Yes, in principle — the statutory stability policy (ORS 312.214) and the two-year bar support immediate issuance; in practice underwriters often carry standard exceptions pending the bar running.
  • Conditions for immediate coverage: Clean ORS 312.040/312.125 notice record, no known disability exceptions, survey/inspection showing no adverse possession.
  • Known insurers: First American Title, Fidelity National Title, Old Republic National Title, and local Oregon title companies operating under the Oregon Title Insurance Rating Organization (OTIRO) manual.
  • Quitclaim/special warranty only? The county deed is a statutory conveyance (not a warranty deed); title insurers issue their own coverage backed by their title plant.
  • needs_verification: Current OTIRO rate manual treatment of tax-deed properties; direct underwriter confirmation.

Marketable Title Act

Oregon does not have a Marketable Record Title Act (MRTA). The function is partly served by ORS 312.230 (two-year prescription for tax-deed challenges) and ORS 93.640 (recording-act protection for bona fide purchasers without notice), but there is no general MRTA lookback-period extinguisher comparable to those in Florida, Michigan, or Minnesota. [Source: ULC state-enactment table confirmed Oregon absent; oregon.public.law ORS ch. 93 confirmed no MRTA; retrieved 2026-06-02]

  • Exists? No.
  • Lookback years: N/A.
  • Statute: N/A.

Judicial Confirmation Before Deed Issues

Not required. The county tax deed is executed by the tax collector automatically upon expiration of the redemption period (ORS 312.200); no court confirmation of the deed is required. [Source: oregon.public.law — ORS 312.200, retrieved 2026-06-02]

  • Required? No.
  • Tribunal: N/A.
  • Timeline: N/A.

Chain-of-Title Cure

The county tax deed (ORS 312.270) extinguishes all liens and encumbrances except municipal local-improvement assessments. A subsequent county-to-private purchaser deed additionally extinguishes those local-improvement assessments (ORS 312.270, second sentence). The depth of cure is effectively all pre-lien defects for the county deed, and full extinguishment (including local-improvement assessments) for the private-purchaser deed. [Source: oregon.public.law — ORS 312.270, retrieved 2026-06-02]

  • Depth: All pre-foreclosure liens and encumbrances except local-improvement assessments (county deed); all liens including local-improvement assessments (private-purchaser deed from county).

5c. TRO & Injunctive Relief

Recognized Grounds for a TRO / Preliminary Injunction

Oregon courts recognize the following grounds to halt a tax or mortgage foreclosure sale via temporary restraining order (TRO) or preliminary injunction:

  • Notice defect — defective ORS 312.040 / ORS 312.125 mailed or published notice that actually misled the property owner (ORS 312.230); or, for trustee’s sales, a material violation of the notice-of-sale requirements (ORS 86.771).
  • Payment dispute — disputed facts about whether taxes have been paid (disputed entry on foreclosure list).
  • Constitutional / Tyler takings — argument that the proceeding will generate an unconstitutional surplus taking.
  • Homestead / SCRA — servicemember protections under 50 U.S.C. §§ 3953–3954; homestead exemption arguments.
  • Bankruptcy automatic stay — a bankruptcy filing automatically stays the sale without a TRO (federal overlay; bankruptcy-automatic-stay).
  • Fraud or misrepresentation by the lender/trustee in the foreclosure process. [Source: ORCP 79 A(1); ORS 312.230; search results on Oregon non-judicial foreclosure TRO grounds; retrieved 2026-06-02]

Oregon state-court TRO/preliminary injunction standard is distinct from the federal four-part Winter test. Under ORCP 79 A(1), the moving party must show either: (a) the complaint alleges facts that appear sufficient to constitute a cause of action for injunction and the act to be restrained will cause injury during litigation, or (b) the adverse party is doing or threatening an act “in violation of the rights” of the moving party tending to render judgment ineffectual.

Oregon courts do not require “likely to succeed on the merits” — instead the threshold is a sufficient showing that the status quo is worth preserving. Courts also consider balancing of hardships discretionarily. Security must be posted under ORCP 82. [Source: ORCP 79 A(1); Markowitz Herbold article on Oregon TRO standard, retrieved 2026-06-02; ORCP 82]

Court with Jurisdiction

Oregon circuit court in the county where the property is located (equity jurisdiction for injunctive relief; ORS 105.605; ORCP 79). For federal questions (SCRA, constitutional), the U.S. District Court for the District of Oregon is available. [Source: ORCP 79; ORS 105.605]

Bond Required?

Yes — ORCP 82 requires that “no restraining order or preliminary injunction shall issue except upon the giving of security by the applicant, in such sum as the court deems proper.” Bond amount is in the court’s discretion; no fixed formula is prescribed by rule. Exceptions: no security required to prevent violent/threatening conduct or to restrict a party to available judicial remedies (ORCP 82 A(1) exceptions). [Source: ORCP 82 A(1), retrieved 2026-06-02]

  • Bond required? Yes (ORCP 82), court-set amount.
  • Typical amount: Varies by property value and projected harm; no published Oregon benchmark for foreclosure TROs — needs_verification.

Emergency Timeline

A TRO without prior notice may issue under ORCP 79 B(1) if the applicant shows that immediate and irreparable injury will result before the adverse party can be heard, and documents why notice should be excused. The TRO expires within 10 days unless extended for good cause or by consent (ORCP 79 B(2)). A preliminary injunction hearing must be noticed at least 5 days in advance (ORCP 79 C).

For a properly filed emergency motion in a county circuit court, 24–48 hour relief is achievable; some rural county courts may require 2–5 business days depending on judicial availability. [Source: ORCP 79 B; industry practice — needs_verification for specific county court timelines]

  • Emergency timeline: 24–48 hours if ex parte motion filed with ORCP 79 B affidavit.

Effect on a Completed Sale

  • Tax foreclosure (county deed): ORS 312.230 bars most challenges to a completed foreclosure sale after two years; the deed vests on execution (ORS 312.200). A sale completed before a TRO issues is generally not voided by a later TRO; the challenger must commence proceedings within the two-year ORS 312.230 window and pay the required amount into court.

  • Trustee’s sale (non-judicial mortgage): Oregon courts have been restrictive on post-sale challenges. A completed trustee’s sale is not automatically void for technical violations; where default no longer existed at the time of sale the sale may be void (Staffordshire Investments principle; needs_verification for cite). A TRO that issues after the trustee’s sale has no effect on the completed transfer of title; the remedy is damages or an action to quiet title.

  • Judicial mortgage foreclosure: court confirmation governs; a TRO could forestall confirmation. [Source: ORS 312.230; ORS 312.200; search results on Oregon trustee-sale post-sale challenges; retrieved 2026-06-02]

  • Effect on completed sale: Generally no effect after sale; remedy shifts to damages or ORS 312.230 quiet-title proceeding.

Non-Judicial Foreclosure Notes

Non-judicial trustee’s sales (ORS 86.752–86.815) are notoriously difficult to enjoin post-sale in Oregon. Borrowers must act before the sale — filing for a TRO after the trustee’s deed records usually fails because ORS 86.797(1) provides the sale “forecloses and terminates” all interests of noticed parties. The better strategy is a pre-sale TRO combined with a complaint for wrongful foreclosure. [Source: ORS 86.797(1); retrieved 2026-06-02]

7b. Lien Survival & Purchaser Exposure

IRS 120-Day Redemption Right (26 U.S.C. § 7425)

The federal IRS right of redemption applies to Oregon tax sales. When property is sold at a tax sale and a federal tax lien is on record, the IRS has a statutory right to redeem within 120 days of the sale (26 U.S.C. § 7425(d)(1)) or the period allowed by Oregon law, whichever is longer. For Oregon’s two-year redemption period, the Oregon period is longer, so the IRS may exercise its redemption right within two years of the foreclosure judgment if Oregon law so permits (i.e., the longer state period governs by statute). Notice under 26 U.S.C. § 7425(b) must be given to the IRS at least 25 days before the sale or the federal lien is not discharged and the buyer takes subject to it. [Source: 26 U.S.C. § 7425(d)(1); IRS IRM 5.12.5; retrieved 2026-06-02; corroborated by ORS ch. 312 in rem judgment note]

  • Applies? Yes.
  • Procedure: County must give IRS 25-day pre-sale written notice per 26 U.S.C. § 7425(b); IRS then has 120 days (or longer Oregon statutory period) to redeem.
  • Citation: 26 U.S.C. § 7425(d); 26 C.F.R. § 301.7425-4.
  • needs_verification: Confirm Oregon county practice for IRS notice in the in-rem ORS ch. 312 process (the “sale” is to the county; it is unclear if Oregon counties routinely give § 7425 notice on the in-rem judgment; needs direct county practice confirmation).

HOA Super-Priority

Condominiums (ORS 100.450): An association’s assessment lien on a condominium unit is prior to all liens except tax liens and a first mortgage. However, under ORS 100.450(7), the association may give the first lienholder 90-day written notice of owner default; if the mortgagee fails to initiate foreclosure within 90 days, the association’s lien jumps to super-priority — ahead of the first mortgage. The Oregon Supreme Court confirmed this in Bank of New York Mellon Trust Co. v. Sulejmanagic (2021). There is no dollar cap on the super-priority amount.

Planned communities / HOAs (ORS 94.709): Assessment liens for planned-community HOAs are subordinate to tax/assessment liens and first mortgages/trust deeds; no super-priority jumping mechanism is provided. [Source: oregon.public.law — ORS 100.450, ORS 94.709; retrieved 2026-06-02; Oregon Supreme Court — Bank of New York Mellon Trust Co. v. Sulejmanagic (2021)]

  • Super-priority exists? Yes for condominiums (ORS 100.450); No for planned- community HOAs (ORS 94.709).
  • Statute: ORS 100.450(7) (condos); ORS 94.709 (HOAs).
  • Cap: No monetary cap; unlimited (ORS 100.450 does not cap the jumping-priority amount); ORS 94.709 has no super-priority.
  • Survives tax sale? ORS 312.270 vests county title “free from all liens and encumbrances except municipal local-improvement assessments.” HOA assessment liens are not municipal local-improvement assessments; they should be extinguished by the county tax deed. However, HB 4064 (introduced 2026) signals legislative attention to HOA-assessment accrual during county ownership — the interaction is not fully settled. [needs_verification — HB 4064 status and effect on HOA lien survival post-county-deed]
  • Survives mortgage foreclosure? ORS 100.450(7) super-priority can survive a mortgage foreclosure if the 90-day notice mechanism triggered before the sale; ORS 94.709 HOA liens do not survive senior-mortgage foreclosure.
  • Leading cases: Bank of New York Mellon Trust Co. v. Sulejmanagic (Or. 2021) [needs_verification — citation and source_url not retrieved; case confirmed via CFS Blog summary and USFN article only].

Environmental / CERCLA Liens

The county tax deed (ORS 312.270) vests title “free from all liens and encumbrances except municipal local-improvement assessments.” A federal CERCLA lien (42 U.S.C. § 9607(l)) is a federal encumbrance not exempted by ORS 312.270. Under federal law, CERCLA § 107(l) gives the U.S. a lien on the contaminated property that is generally senior to non-perfected private liens but its interaction with a state tax deed requires 26 U.S.C. § 7425 notice analysis (the IRS notice statute also covers EPA CERCLA cost-recovery liens by analogy). In practice, federal CERCLA liens likely survive an Oregon county tax deed if not properly discharged — the county is not immune from federal law. Oregon DEQ remedial-cost liens (ORS 465.335) are recorded like ordinary liens and have no super-priority; they should be extinguished by a county tax deed that wipes all non-excepted encumbrances. [Source: ORS 312.270; ORS 465.335; 42 U.S.C. § 9607(l); retrieved 2026-06-02; needs_verification — no Oregon appellate case directly addressing CERCLA lien survival through ORS ch. 312 tax deed found]

  • CERCLA lien survives tax sale? Likely yes for federal CERCLA liens (federal law prevails); needs_verification — no Oregon authority found.
  • State superfund super-lien? No — ORS 465.335 does not confer super-priority.
  • Notes: EPA and DEQ site listings and CERCLA liens are the due-diligence items bearing on industrial or contaminated parcels prior to a bid.

Municipal Code / Blight Liens

ORS 312.270 clears all liens and encumbrances except “assessments levied by a municipal corporation for local improvements.” This exception covers local-improvement assessments (sidewalks, sewers, lighting districts) but not code-enforcement liens or nuisance-abatement charges unless they are characterized as local-improvement assessments. General code-enforcement and blight liens are typically extinguished by the county tax deed. However, ORS 312.990 penalties and nuisance-abatement costs are among the “allowable costs” the county deducts under HB 2089 § 8(4) — meaning they are satisfied from the sale proceeds, not carried forward. [Source: ORS 312.270; Enrolled HB 2089 § 8(4); retrieved 2026-06-02]

  • Municipal code / blight liens survive tax sale? Generally no — extinguished by county tax deed under ORS 312.270; nuisance-abatement costs become county allowable costs under HB 2089 § 8.
  • Statute: ORS 312.270.
  • needs_verification: Confirm whether ORS 312.270 “local improvement assessments” encompasses code-enforcement liens in specific municipal code contexts.

Mechanic / Construction Liens

Mechanic and construction liens (ORS ch. 87) are not excepted by ORS 312.270; they are extinguished by the county tax deed along with mortgages and judgment liens. [Source: ORS 312.270; retrieved 2026-06-02]

  • Survive tax sale if properly noticed? No — extinguished by county tax deed.
  • Notes: Lien claimants must independently redeem or file defenses during the ORS 312.070 answer period to preserve rights.

Junior Mortgage / Senior-Lien Exposure

Oregon’s ORS 312.270 deed clears all non-excepted liens. A private purchaser buying from the county post-redemption takes free of junior mortgages. However, if the county failed to give proper IRS § 7425 notice, a federal tax lien may survive to the purchaser. [Source: ORS 312.270; 26 U.S.C. § 7425; retrieved 2026-06-02]

  • Purchaser takes subject to senior? No — the county deed extinguishes all non-excepted liens including senior mortgages. (The county is the sale purchaser, so there is no “senior lender” scenario at the ORS ch. 312 stage.)
  • Common mistake: Assuming HOA assessments are extinguished without checking whether the specific association lien is a “local improvement assessment” or a private HOA assessment (only the latter is extinguished).

Due Diligence Checklist for Oregon Tax-Sale Purchasers

Before bidding at the county’s post-redemption auction:

  1. IRS lien search — check PACER and county records for federal tax liens; confirm county gave § 7425 notice.
  2. EPA / DEQ environmental search — check EPA Superfund/ECHO database and DEQ cleanup site list for CERCLA or state hazardous-substance liens.
  3. UCC / judgment lien search — Secretary of State (UCC) and circuit court (judgment liens, though most are extinguished).
  4. HOA status — for condominiums, determine if ORS 100.450(7) super-priority notice was given; check for back assessments.
  5. Municipal local-improvement assessment — order a local-improvement district certificate from the relevant municipality (survives to county buyer and must be current).
  6. ORS 312.125 notice compliance — confirm proper mailed notice was sent; a documented defect could allow a challenge within two years.
  7. Title plant / title commitment — order a preliminary title report from an Oregon title company before bidding.
  8. ORS 312.270 deed chain — confirm the property passed through the county on the foreclosure judgment, not an alternative process.

10b. Purchaser Obligations During Redemption

Must Pay Subsequent Taxes?

During the two-year redemption period, the county holds title — there is no private purchaser holding a lien certificate. Property taxes that accrue during the redemption period are the county’s obligation as the statutory owner. Under HB 2089 § 8(4), those taxes and interest “that would have been due following the judgment during the redemption period” are allowable costs deducted from the sale proceeds before any surplus. [Source: Enrolled HB 2089 § 8(4); ORS 312.120(3) (property subject to assessment during redemption as if in private ownership); retrieved 2026-06-02]

  • Required (of private purchaser)? Not applicable — there is no private purchaser during the redemption period in Oregon; the county is the sole holder.
  • Consequence of county’s failure? Subsequent taxes accrue and are deducted from surplus before distribution.
  • Citation: Enrolled HB 2089 § 8(4); ORS 312.120(3).

Must Notify Owner of Expiration?

The obligation to notify the owner of the approaching redemption deadline falls on the county tax collector, not a private purchaser. ORS 312.125 (as amended by HB 2089 § 2) requires the county to send a certified + first-class mail notice at least one year before redemption expires, warning of forfeiture and of the right to claim a surplus. HB 2089 § 3 separately requires a surplus notice within 60 days of eligibility.

  • Required (of private purchaser)? Not applicable — the notice obligation belongs to the county tax collector (ORS 312.125), not a private purchaser (who does not exist during the redemption period).
  • Form: Certified + first-class mail (ORS 312.125).
  • Timing: At least one year before redemption expiration.
  • Consequence of county’s failure: The notice defect may toll the redemption period or render the county deed voidable (ORS 312.230 — challenge must be brought within two years; actual-misleading standard).
  • Citation: ORS 312.125; Enrolled HB 2089 § 2.

Owner Occupancy Right During Redemption

The former owner retains the right of possession during the two-year redemption period under ORS 312.180. The county’s acquisition does not affect the former owner’s possessory right. However, the former owner forfeits possession if they commit waste or allow others under their control to commit waste; waste triggers the county’s right to possession and subjects the owner to criminal penalties under ORS 312.990. [Source: oregon.public.law — ORS 312.180; ORS 312.990; retrieved 2026-06-02]

  • Owner may remain? Yes — statutory right of possession during redemption (ORS 312.180).
  • County/purchaser may enter? No right of entry during the redemption period absent waste or abandonment (which triggers ORS 312.122 reduced-redemption hearing).
  • Citation: ORS 312.180; ORS 312.122.

Costs Collectible Upon Redemption

Under ORS 312.120(2) and (5), the redemptioner must pay:

  • The full judgment amount (all taxes, interest, penalties in the judgment);

  • Interest at the statutory rate (1⅓%/month, ORS 311.505(2)) from judgment to redemption date;

  • A 5% penalty on the total judgment amount;

  • A fee: $50 if redeemed before the ORS 312.125 one-year notice; the greater of$50 or the actual reasonable cost of title search and related expenses if redeemed after that notice. [Source: oregon.public.law — ORS 312.120(2), (5); retrieved 2026-06-02]

  • Bid plus interest? Yes — judgment amount plus statutory interest.

  • Subsequent taxes? Not separately; they are folded into the county’s allowable costs under HB 2089 and deducted from surplus — not charged to the redemptioner directly at the time of redemption. [needs_verification — confirm ORS 312.120 is silent on redemptioner paying post-judgment taxes separately vs. folded into judgment]

  • Documented improvements? No — ORS 312.120 does not allow the county to charge the redemptioner for improvements made during the redemption period.

  • Citation: ORS 312.120(2), (5).

Property Maintenance Obligation

ORS 312.180 focuses on the prohibition against waste rather than imposing affirmative maintenance obligations on the county or a purchaser. The former owner’s possessory right is conditioned on not committing waste; the county as statutory owner has no affirmative maintenance duty stated in ORS ch. 312 during the redemption period. Under HB 2089 § 8(4), reasonable costs of property maintenance or preservation incurred by the county may be deducted as allowable costs before surplus, suggesting the county may spend on maintenance and recover it from sale proceeds.

  • Required? No explicit affirmative maintenance obligation on the county or private purchaser; the former owner’s obligation is anti-waste (ORS 312.180).
  • Standard: No-waste standard (ORS 312.180 + ORS 312.990 penalty).
  • Citation: ORS 312.180; Enrolled HB 2089 § 8(4).

11b. Restrictions & Special Rules

Entity Purchase Restrictions

Oregon’s ORS ch. 312 does not restrict who may purchase from the county post- redemption by entity type. There is no natural-persons-only limitation, no LLC bar, and no foreign-entity prohibition in ORS ch. 312 or HB 2089. The county’s disposition process (HB 2089 § 6) governs how the property is sold (broker listing or public auction) without bidder entity restrictions beyond general Oregon law. [Source: Enrolled HB 2089 § 6; ORS ch. 312 — no entity restrictions found; retrieved 2026-06-02; needs_verification — confirm absence of any ORS ch. 275 or ORS ch. 271 restriction on entity purchases of county tax-foreclosed property]

  • Natural persons only? No.
  • LLC permitted? Yes.
  • Foreign entity permitted? Yes, subject to standard Oregon foreign-entity registration requirements (ORS ch. 60/65).
  • Notes: No entity-type bidder restrictions identified in ORS ch. 312 or HB 2089.
  • Citation: ORS ch. 312; Enrolled HB 2089 § 6.

Insider Prohibition

HB 2089 § 6 requires that when a primary-residence property is listed with a real estate broker, the broker “does not hold an elected or appointed office and is not employed by any government entity.” This prohibits government-employed real estate professionals from serving as the listing broker, effectively an anti-conflict-of-interest rule. No broader insider-bidder prohibition (prohibiting county employees from bidding at the auction) was found in ORS ch. 312 or HB 2089; general Oregon Government Ethics Law (ORS ch. 244) would apply to county officials. [Source: Enrolled HB 2089 § 6 (broker qualification); ORS ch. 244 (ethics); retrieved 2026-06-02; needs_verification — confirm no ORS ch. 312 explicit insider-bidder ban]

  • Who prohibited: Government-employed real estate brokers from serving as listing agents (HB 2089 § 6); county officials subject to ORS ch. 244 conflict rules.
  • Scope: Broker-qualification restriction; general ethics overlay.
  • Citation: Enrolled HB 2089 § 6; ORS ch. 244.

Right of First Refusal

No right of first refusal for municipalities, CDCs, nonprofits, or land banks was found in ORS ch. 312 or HB 2089. The county may voluntarily transfer property to a nonprofit for public benefit under ORS ch. 271 / ORS ch. 275 (public-benefit transfer with newspaper notice and hearing), but this is not a formal ROFR mechanism — it is a county discretionary transfer. [Source: ORS 271.310; ORS ch. 275 general; search results on county tax-title programs; retrieved 2026-06-02]

  • Municipalities? No statutory ROFR.
  • CDCs/nonprofits? No statutory ROFR; county has discretion to transfer to nonprofits under ORS ch. 271/275.
  • Land banks? No statutory land-bank ROFR found.
  • Match window days: N/A.
  • Citation: ORS 271.310; ORS ch. 275; Enrolled HB 2089 § 6.

Land Bank Program

Oregon does not have a statewide land-bank statute. Individual counties manage tax-title inventory (the “Tax Title Program”) under their general authority (ORS ch. 275) to manage county-owned land. Multnomah County, for example, operates a DART Tax Title Program that manages tax-foreclosed property disposition. HB 2089 §§ 5–6 imposed new sale obligations on counties but did not create a formal land bank. [Source: Multnomah County DART Tax Title Program (multco.us); ORS ch. 275; Enrolled HB 2089; retrieved 2026-06-02]

  • Statewide land bank program exists? No.
  • Name: N/A (county-level Tax Title Programs exist informally).
  • Statute: ORS ch. 275 (general county-lands authority).
  • Receives unsold properties? Counties retain unresolved parcels under ORS ch. 275 pending disposition.
  • Operational notes: HB 2089 § 6 now mandates sale (or retain-for-public-use with surplus return) within defined timelines, limiting indefinite county retention.

Deficiency Judgment Rules

Post-Tax-Sale (ORS ch. 312): No deficiency judgment is available after a county tax-foreclosure. The in-rem nature of the proceeding means there is no personal liability imposed on the former owner for any deficiency between taxes owed and property value. The county’s remedy is strictly against the property. [Source: ORS ch. 312 in-rem structure; no deficiency provision found; retrieved 2026-06-02]

Post-Mortgage Foreclosure (ORS 86.797):

  • Non-judicial trustee’s sale: Deficiency judgment prohibited — “an action for a deficiency may not be brought after a trustee’s sale” (ORS 86.797(1)).

  • Judicial foreclosure of residential trust deed: Deficiency prohibited (ORS 86.797(2)).

  • Judicial foreclosure of non-residential trust deed: Deficiency allowed if the complaint requests it; execution issues for the difference between unpaid balance and net sale proceeds (ORS 86.797(3)).

  • Guarantors: Lender may pursue guarantors for deficiency after judicial foreclosure but guarantors may not recover from the grantor (ORS 86.797(4)–(5)). [Source: oregon.public.law — ORS 86.797; retrieved 2026-06-02]

  • Permitted after tax sale? No.

  • Permitted after mortgage foreclosure? No for non-judicial trustee’s sale and residential judicial foreclosure; yes for non-residential judicial foreclosure.

  • Fair value defense? No explicit fair-value offset in ORS 86.797 for allowed deficiencies; execution issues for actual deficiency (sale proceeds shortfall).

  • Citation: ORS 86.797.

Anti-Deficiency Statute

Exists? Yes — ORS 86.797 is Oregon’s primary anti-deficiency statute for trust deeds. Scope: Covers (a) all trustee’s sales (non-judicial); (b) judicial foreclosure of residential trust deeds (four or fewer units, owner-occupied as primary residence at origination or by purchase-money intent). Does not cover non-residential judicial foreclosures. Citation: ORS 86.797(1)–(2).

One-Action Rule

Oregon does not have an explicit one-action rule requiring a lender to choose a single remedial action (foreclose or sue on the note). However, ORS 86.797 functionally limits post-sale options: after a trustee’s sale or residential judicial foreclosure, no deficiency action is available, effectively creating a single-remedy result for those categories. For non-residential judicial foreclosure, the lender may pursue both foreclosure and a deficiency judgment in the same proceeding (ORS 86.797(3)). [Source: ORS 86.797; q-law.com summary of Oregon mortgage law; retrieved 2026-06-02; no explicit Oregon one-action statute found]

  • Exists? No explicit statutory one-action rule.
  • Citation: ORS 86.797 (functional equivalent for non-judicial / residential).
  • Notes: The anti-deficiency provisions of ORS 86.797 render the one-action question moot for most residential foreclosures.

Local pages

County deep dives: clackamas-or, deschutes-or, jackson-or, lane-or, marion-or, multnomah-or, washington-or Unclaimed funds agency: unclaimed-property-oregon

Legal information, not legal advice. This page summarizes Oregon statutes and case law for research purposes. Statutes and local county procedures change; verify against the cited primary sources and consult a licensed Oregon attorney before acting. Last verified: 2026-06-02.

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