In Oregon, a tax foreclosure notice usually means at least one year of property taxes is now three years delinquent. The county is starting the court process, and a 5% penalty has been added. You are still the owner. After the court judgment, you'll typically have two more years to pay before the house is deeded to the county.
What the notice means
- Your account is on the county's foreclosure list.
- The list will be published in the newspaper, and the county will ask the circuit court for a foreclosure judgment.
- A 5% penalty has been added on top of the taxes and interest.
- It does not mean you have to move out, and it doesn't mean the house is gone.
Five things to do this week
- Get an exact payoff. Call the Jackson County Tax Collector (10 S Oakdale Ave, Medford) or the Josephine County tax office in Grants Pass. Ask for the total owed, which years are in foreclosure, and whether a judgment has been entered yet.
- Pay the oldest year first, if you can. Before the judgment, partial payments are generally accepted. Paying off the oldest delinquent year can take the account out of this year's foreclosure.
- Check whether you qualify for help. If you're 62 or older or disabled, the state deferral program may delay foreclosure.
- Tell your mortgage lender if you have one. Many lenders will pay delinquent taxes and add them to your loan or escrow rather than risk the county's lien, which comes ahead of theirs.
- Know your number. Figure out roughly what the house is worth and what's owed on it. That tells you whether refinancing or selling is realistic.
How much time you really have
Roughly two years and a few months from the notice, if nothing is paid. The danger is that the bill keeps growing the whole time, through new tax years, 16% annual interest and the penalty, and after the judgment the county generally wants the full amount at once. Many owners find the number is much harder to reach in year two of redemption than it was the month the notice arrived. See the full timeline.
If you can't catch up
That's okay to admit, and it's better to admit it early. Selling before the deed lets you pay the taxes at closing and keep your remaining equity, which is far more than you'd likely recover through the county's surplus process. You can sell to a cash buyer like us, or list with an agent if the house is in good shape and you have time. We're glad to walk through both with you. See how we buy houses with back taxes.
Watch out for scams
Foreclosure lists are public, so you may hear from people offering to “save” your home. Be cautious with anyone who asks for an upfront fee, asks you to sign over your deed, or pressures you to decide on the spot. Any legitimate buyer, including us, should put an offer in writing and give you time to review it with family or an attorney.
This is general information, not legal or tax advice, and Rogue Valley Cash Buyers is not affiliated with any county or government agency. Deadlines and amounts depend on your specific account — your county tax collector can confirm exactly what you owe, and an Oregon attorney can advise on your situation.