Sale Type: | County tax foreclosureThe legal process by which a lienholder forces the sale of a property to recover the debt owed when the property owner fails to pay., then county sale of the foreclosed property |
Interest Rate: | Not applicable to buyers (the former owner pays interest plus a 5% penalty and a fee to redeem) |
Bid Method: | Public sale to the highest and best bidder (format set by each county) |
2 years from the foreclosure judgment | |
Sale Date(s): | Set by each county; there is no statewide schedule |
State Statute(s): | ORS Chapter 312 (Foreclosure of Property Tax Liens) and ORS 275.110 to 275.250 (County Land Sales) |
Limited (counties may sell some low-value parcels by private sale) | |
State Website: |
How Oregon Property Tax Foreclosure Works
Oregon does not sell tax lienA legal claim or right against a property that serves as security for a debt or obligation owed by the property owner. certificates, and the tax collector does not sell tax deeds to investors at a delinquent tax sale. Instead, the county forecloses on the property through the courts and then sells the property it ends up owning. Here is the process in order:
Real property becomes subject to foreclosure once three years have passed since the earliest date of delinquency (ORS 312.010).
The tax collector publishes a foreclosure list and gives notice by publication and by mail. Interested persons have 30 days after the list is first published to file an answer and defense.
If no objection is made, or an objection is overruled, the court enters a judgment of foreclosure. The property is then sold to the county for the taxes and interest owed.
At this stage, no private buyer is involved. The county is the buyer.
The Two-Year Redemption Period
After the judgment, the county holds the property for two years from the date of the judgment, unless it is redeemed sooner. Redemption means the right to reclaim the property by paying what is owed. Here is what to know:
The former owner, an heir, or someone holding a recorded lien on the property can redeem it.
To redeem, the person pays the full amount under the judgment, plus interest, a 5% penalty and a fee.
The former owner keeps the right to possess the property during the redemption period.
The tax collector must send notice that the redemption period is expiring, by certified and regular mail, at least one year before it ends.
If the property is not redeemed, it is deeded to the county, and the rights of the former owner and others in the property are forfeited. Title is then held by the county.
Where Investors Fit: Buying From the County
Counties sell foreclosed property in public sales under ORS 275.110 to 275.250. By law, these sales go to the highest and best bidder. The details are set by each county, so they vary:
Format: some counties hold in-person auctions, some use online auctions, and some accept sealed bids.
Payment: state law allows a county to accept cash, or at least 10% down with the balance paid under a purchase agreement over up to 20 years at an interest rate the county sets. Some counties require full payment on the day of the auction and offer no financing.
Condition: properties are commonly sold as is, with no promise about title or condition.
Private sales: a county may sell certain low-value parcels by private sale. These are parcels with a real market value under $15,000 that cannot be used for a dwelling under local zoning and building codes (ORS 275.225).
Because there is no sale at the tax-delinquency stage, there is no lien interest for an investor to earn. A buyer’s outcome depends on the property itself, what it was bought for, and what it can be used or resold for.
What This Means for Investors
Oregon is a different model from a tax lien state or a typical tax deedA legal document that transfers property ownership to the government or an investor after the owner fails to pay property taxes for an extended period. state. You are buying property from the county after the foreclosure process is over, not earning interest on a lien and not competing at a delinquent tax sale. Returns are not guaranteed. The result depends on the price you pay, the condition and legal status of the property, and your plan for it. All investing involves risk, and results vary.
What Investors Should Check
The county’s sale notice, including the date, format, minimum bid and payment terms
Whether the county offers any financing, or requires payment in full
Title and any recorded claims, since properties are commonly sold as is, using our guide on how to evaluate tax lien properties at auction
Zoning, access and whether the parcel can actually be built on or used
Which counties in the state actually hold sales, and how often
The current statutes, including how our tax lien states vs. tax deed states map shows each state
This content is for educational purposes only and is not legal, tax or financial advice. Talk with a qualified professional about your own situation.
Learn How Tax Sales Work in a Free Workshop
Every state handles delinquent property taxes differently, and Oregon’s county foreclosure process is not the same as the sales in lien and deed states. Register for a Free Workshop with our coaching team to learn how tax liens and tax deeds work and how to research them step by step.