Oregon's New Surplus Law: The Money Sits in an Interest-Bearing Account While You Wait
Oregon counties acquire tax-delinquent property directly through foreclosure rather than selling a certificate to a third-party investor first — the county itself ends up holding title, then sells the property. Before 2024, the proceeds of that sale went to the county's costs and then to the county and the local taxing districts (ORS 275.275), and the former owner got nothing beyond the tax debt they'd already failed to pay. Two laws changed that. House Bill 4056 (Oregon Laws 2024, chapter 77) required every county to set up a process for determining, noticing and holding surpluses in an interest-bearing account. House Bill 2089 (Oregon Laws 2025, chapter 475), in effect since September 26, 2025, then wrote one set of rules for the whole state. Most of the details below come from HB 2089.
Who counts as a "claimant"
Under HB 2089, the claimant is the owner of the property on the date of the foreclosure judgment, or that owner's estate, heirs or successors. Creditors, other interest holders and assignees are not claimants, although a lienholder or creditor can still claim based on a valid lien or debt. Assignments of a surplus claim are void, except protective ones such as in a bankruptcy or a guardianship (HB 2089, §§ 5, 9). That keeps the process focused on the person who actually lost the property, not on debt buyers trying to intercept the payout. The law covers claims where the owner received the one-year redemption notice on or after May 25, 2023 (§ 13).
The money earns interest while it waits
Once a property sells, the county deposits the gross sale proceeds into a separate, interest-bearing account, and the interest is added to what is paid out (HB 2089, § 6(8)). That's a genuinely useful detail if you're a former owner waiting on a claim — the money isn't just sitting idle in a general fund.
The 60-day determination window
Within 60 days, the county determines the surplus: the sale price, or the appraised value if the county kept the property, minus allowable costs such as the judgment and interest, the taxes for the redemption years, maintenance and title costs, city liens, and reasonable foreclosure and sale fees. The claimant gets an itemized accounting (§ 8). The county must notify the claimant within 60 days and then send the surplus to the State Treasurer as unclaimed property within 30 days of determining it (§§ 3, 10). The Treasury says claims can be made there for free, with no deadline.
How the property gets sold now
HB 2089 also changed the sale itself. A former owner's primary residence in a residential zone has to be listed with a real estate broker, and other property goes to a public auction with an opening bid of two-thirds of fair market value (§ 6). Both are designed to get a real price, which is what makes the surplus worth claiming. The Oregon state page covers the sale rules in detail.
Looking for a list? Our directory doesn't have an official Oregon county list yet, so for now ask the office that ran the sale. The counties that do publish one are in our directory of official surplus funds lists.
This article is general information, not financial or legal advice, and reflects a law that took effect relatively recently — confirm current claim procedures with the county treasurer that handled the specific foreclosure. See our broader guide on surplus funds after a tax sale and the Oregon state page for foreclosure mechanics.