Since a 2023 U.S. Supreme Court decision and a 2025 Oregon law, former owners can claim the surplus from a county's sale of a tax-foreclosed property through the Oregon State Treasury. But the surplus is only what's left after the county deducts the taxes, interest, penalties and its costs, and a county sale isn't designed to get top dollar. Selling the house yourself before the deed to the county almost always leaves more in your pocket, sooner.
What changed
In Tyler v. Hennepin County (2023), the U.S. Supreme Court held that a county can't keep the value of a tax-foreclosed home beyond what's actually owed. Oregon responded with legislation: House Bill 4056 (2024) launched a statewide work group, and House Bill 2089, which took effect September 26, 2025, set up a uniform surplus process for counties. It applies to properties where owners received redemption-period notices on or after May 25, 2023.
How the surplus process works
- The county sells the property using the sale method the law sets for that type of property, which can include listing it through a real estate agent or selling at auction.
- The county calculates the surplus — the sale proceeds minus delinquent taxes, special assessments, interest, penalties and allowable costs.
- The surplus goes to the Oregon State Treasury, and the former owner files a claim through the Treasury's unclaimed-property process. Other lienholders may also have claims.
Why the surplus is usually less than your equity
- Deductions. Everything owed, plus the county's costs of foreclosing and selling, comes out first.
- Sale price. The county is selling a property it took, often vacant, sometimes at auction — not the conditions that produce the highest price.
- Time. The house has to be deeded to the county, sold, accounted for, and transferred to the Treasury before you can even file a claim.
- Control. You have no say in the price, the timing, or what happens to belongings left behind.
The alternative: sell before the deed
Up until the redemption period expires, you're still the owner. Selling at that point — whether to us or on the open market — means the county is paid only what's actually owed at closing, and every dollar of equity beyond that goes to you on closing day. If the redemption deadline is still ahead of you, you have that choice. Here's how a sale works during the redemption period.
A word of caution about "surplus recovery" offers
If your property has already been deeded to the county, you may be contacted by companies offering to recover surplus funds for a large percentage fee. Oregon's claim process runs through the State Treasury and is available to former owners directly. Read any agreement carefully, and consider talking with an attorney, before signing away part of a claim.
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 — the Jackson County (or Josephine County) Tax Collector can confirm exactly what you owe and where your property is in the process, and an Oregon attorney can advise on your situation.