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OregonHB 20892025 Regular SessionHouseWALLET

Relating to surpluses from the disposition of foreclosed property; and prescribing an effective date.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Foreclosure surplus earns interest before claims

Counties must hold gross sale proceeds in a separate interest-bearing account until they determine the surplus; earned interest is included. Allowed deductions include unpaid taxes, interest, municipal claims, specified penalties or nuisance costs, and reasonable foreclosure and sale expenses. Claimants must receive an itemized accounting. Counties must determine the surplus within 60 days after proceeds are deposited or property value is determined. Within 30 days after that determination, counties must report and deliver the surplus to the State Treasurer as unclaimed property. Within 60 days after a surplus claim can arise, counties must notify claimants at their last known addresses. The notice states the amount owed, who qualifies, filing steps, assistance information, and the right and deadline for circuit-court review. It also goes to the Treasury’s Estates Administration Program, Revenue, Justice, and the municipality where applicable. Oregon and the county must post available-surplus and claim information online. Claimants file with the State Treasurer. For unprobated estates, heirs can submit death, will, beneficiary, and distribution documents; beneficiary signatures are required. An heir who lived there as a primary home for more than one year is presumed authorized to receive payment, absent a written agreement or nonresident heir’s objection. These surplus rules apply to claims with redemption notices on or after May 25, 2023. Earlier notices require a surplus notice within 60 days after the law’s effective date, the 91st day after the 2025 regular session adjourned.

Former owners qualify for foreclosure surplus

The owner when property was sold to the county through tax foreclosure qualifies to claim any surplus. The owner’s estate, heirs, will beneficiaries, bankruptcy estate, and listed legal representatives also qualify. Representatives include a person holding power of attorney, trustee, guardian, or custodian. A successor qualifies only after acquiring substantially all the owner’s assets through inheritance, probate, merger, acquisition, dissolution, or takeover. Creditors, garnishors, other property-interest holders, and people assigned a surplus claim are excluded. Assignments are generally void, with exceptions needed to protect a claimant’s legal interests, such as bankruptcy or guardianship. Claimants have no interest in the surplus during redemption.

New sale rules for foreclosed homes

After redemption ends, counties can keep property for public use or transfer it to a nonprofit for public benefit. That option requires an independent licensed appraisal. Otherwise, a residential-zone property that was the owner’s primary home when taxes were assessed requires an independent broker listing. An independent appraisal is required when its latest tax-statement value exceeds $250,000. The list price must be the highest price reasonably expected to sell. An auction follows three failed broker-contract attempts, 12 months without a broker sale, or when the residential listing rule does not apply. Auction advertising must appear in a multiple listing service for at least 30 days. The first starting bid is two-thirds of fair market value; a winning bid must exceed unpaid taxes and allowed costs. Fair market value uses the latest tax-statement value, or a higher required appraisal. After a failed auction, the next starting bid equals taxes and costs. After a second failure, counties can forgive those amounts and keep the property or transfer it to a nonprofit. Private auction fees are capped at 3% of the surplus. County disposal contracts with brokers, appraisers, auctioneers, and others are exempt from Oregon’s Public Contracting Code.

Stronger foreclosure warnings for property owners

Counties must search records to locate owners and lienholders before sending tax-foreclosure notices. Notices go by certified and regular mail, with personal service available as an alternative. Counties must publish notices locally and online; the State Treasury must also post them online. Notices must identify the property and exact unpaid taxes, interest, and fees. A bold, uppercase warning in at least 14-point type must explain the risk of losing ownership. Notices must explain payment contacts, relief programs, legal help, possible surplus claims, and translation referrals in Oregon’s five leading non-English languages. At least one year before redemption ends, counties must notify people entitled to redeem whose interests were recorded when foreclosure began. This excludes interests that ended for reasons other than the foreclosure judgment. Redemption is the period when eligible parties can reclaim the property.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 94 • No: 0

Senate vote • 6/20/2025

Third reading. Carried by Taylor. Passed.

Yes: 28 • No: 0

Senate vote • 6/16/2025

Finance and Revenue: Heard and Reported Out

Yes: 5 • No: 0

House vote • 6/10/2025

Third reading. Carried by Levy E. Passed.

Yes: 54 • No: 0

House vote • 6/3/2025

Revenue: Heard and Reported Out with Amendments

Yes: 7 • No: 0

Actions Timeline

  1. Chapter 475, (2025 Laws): Effective date September 26, 2025.

    8/7/2025House

  2. Governor signed.

    7/17/2025House

  3. President signed.

    6/24/2025Senate

  4. Speaker signed.

    6/23/2025House

  5. Third reading. Carried by Taylor. Passed.

    6/20/2025Senate

  6. Second reading.

    6/19/2025Senate

  7. Recommendation: Do pass the A-Eng. bill.

    6/19/2025Senate

  8. Public Hearing and Work Session held.

    6/16/2025Senate

  9. Referred to Finance and Revenue.

    6/11/2025Senate

  10. First reading. Referred to President's desk.

    6/11/2025Senate

  11. Third reading. Carried by Levy E. Passed.

    6/10/2025House

  12. Second reading.

    6/9/2025House

  13. Recommendation: Do pass with amendments and be printed A-Engrossed.

    6/6/2025House

  14. Work Session held.

    6/3/2025House

  15. Public Hearing held.

    4/8/2025House

  16. Public Hearing held.

    1/30/2025House

  17. Referred to Revenue.

    1/17/2025House

  18. First reading. Referred to Speaker's desk.

    1/13/2025House

Bill Text

  • HREV Amendment -8 (Adopted)

    6/3/2025

    PDF

  • HREV Amendment -6 (Proposed)

    5/29/2025

    PDF

  • HREV Amendment -6 (Proposed)

    5/27/2025

    PDF

  • HREV Amendment -5 (Proposed)

    5/20/2025

    PDF

  • HREV Amendment -2 (Proposed)

    4/8/2025

    PDF

  • HREV Amendment -3 (Proposed)

    4/8/2025

    PDF

  • A-Engrossed

    PDF

  • Enrolled

    PDF

  • House Amendments to Introduced

    PDF

  • Introduced

    PDF

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