Lane County agreed to pay $1.35 million to former owners and heirs who lost property to tax foreclosure. Here’s who qualifies, the deadlines, and what to do if you’re behind on property taxes right now.
Short answer: Lane County agreed to pay about $1.35 million to settle a class action claiming it kept the extra money when it sold tax-foreclosed properties. If you, or someone you inherited from, lost property to a Lane County tax foreclosure that became final between October 12, 2017 and December 30, 2025, you may be owed part of it. Claims are due February 22, 2027. And if you’re behind on property taxes right now, this year’s first payment is due Monday, November 16.
The case is Lynch v. Multnomah County, a class action filed in federal court in Oregon in 2023. It argues that Oregon counties violated owners’ constitutional rights by keeping the surplus when they sold tax-foreclosed property for more than the taxes owed. Lane County denies wrongdoing but agreed to settle, and the Board of Commissioners approved the deal on July 14, 2026.
The lead plaintiff’s story shows what was at stake. According to Lookout Eugene-Springfield, Martin Lynch, acting for his late wife’s estate, owed $31,660 in taxes and fees on a Springfield property. The county sold it in 2020 for $118,500. That left nearly $87,000 the family never saw.
In 2023 the U.S. Supreme Court ruled in Tyler v. Hennepin County that a county can’t keep more than it’s owed. Oregon followed with House Bill 2089, which took effect September 26, 2025. Under that law, surplus from a tax foreclosure sale now goes to the Oregon State Treasury for the former owner to claim. This settlement deals with Lane County foreclosures from the years before that system existed.
You may qualify if all of these are true:
Payments come out of a fund of $1,348,311.60, after attorneys’ fees (up to $337,077 plus costs), administration costs and service awards. If valid claims add up to more than what’s left, every payment is reduced proportionally. Any money left over goes to legal aid for housing cases.
Claims are filed through the settlement website, LaneTaxForeclosureSettlement.com, run by the settlement administrator, Kroll. Filing is free, and you don’t need to pay anyone to file for you. You’ll need to show your ownership, lien or heirship. If the owner has passed away and the family is still sorting out who can act for the estate, read do all heirs have to agree to sell.
Yes, and that deadline comes sooner. A separate settlement covers Baker, Columbia, Jackson and Marion counties, with a total fund of $4,919,409.99. It covers properties foreclosed and then sold, donated, transferred or kept between October 23, 2017 and June 7, 2024 (from September 7, 2018 for Baker). Claims must be postmarked by November 30, 2026, through OregonTaxForeclosure.com.
Washington and Yamhill counties have their own settlements with the same November 30 deadline, and a $3.5 million Multnomah County settlement was approved in 2025. If you lost a property to tax foreclosure in Medford, Salem or anywhere in those counties, check before the end of November.
These are the dates on your 2026-27 Lane County property tax statement, and what happens if you miss them:
That’s a long runway, and it’s why so many people let it ride. The interest doesn’t stop. For the full Oregon tax foreclosure process, step by step, and what bankruptcy can and can’t do about it, read our guide.
For newer cases, yes, in part. Under House Bill 2089, the extra money from a tax foreclosure sale goes back to the former owner. It applies when the owner received the one-year redemption notice on or after May 25, 2023. Older cases are what the settlements above cover. Here’s what to know:
So the new law means you don’t lose everything. Selling before the county does still keeps the most equity in your pocket, because you set the price and the closing date.
Selling is the option nobody wants to hear first, but it’s the one that protects the most equity when the taxes can’t be caught up. Earlier this year a homeowner in Eugene called me behind on his property taxes, already set on bankruptcy. He had more options than he thought, and so do you.
We buy houses as-is in Eugene, Springfield, Cottage Grove and across Lane County, including houses with back taxes, liens or a tax foreclosure already started. The taxes get paid at closing, and you walk away with your equity. I’m a real estate investor and cash home buyer, and I’m also a registered Oregon residential property wholesaler, #201264508. Call and ask for Gerren at (541) 250-3067.
How much will I get from the Lane County tax foreclosure settlement? It depends on the surplus tied to your property and how many valid claims are filed. Payments are a proportional share of the fund after fees and costs.
What is the deadline to file a claim? February 22, 2027, for Lane County. For Baker, Columbia, Jackson and Marion counties, claims must be postmarked by November 30, 2026.
Can heirs file a claim? Yes. Heirs and successors of the former owner can file, with proof of their right to the property.
When are Lane County property taxes due? The first payment, or the full year with a 3% discount, is due November 16, 2026, because November 15 falls on a Sunday. The other payments are due February 15 and May 15.
Can I sell my house if I’m behind on property taxes in Oregon? Yes. The back taxes, interest and any penalties are paid from the sale at closing, and you keep what’s left.
What happens to the extra money when an Oregon county sells a tax-foreclosed house now? Under House Bill 2089, in effect since September 26, 2025, the surplus goes to the Oregon State Treasury, where the former owner can claim it.
General information, not legal advice. Talk to a real estate attorney about your situation, especially if you’re filing a claim for an estate.
