Overview — Who can claim surplus funds after a tax foreclosure in Oregon?

If a county tax foreclosure sale of real property in Oregon brings in more money than the taxes, interest, penalties, fees, and any superior liens, the extra money (the “surplus” or “overage”) must be paid to the person or entity that is legally entitled to it. Typical claimants include the former record owner, the owner’s heirs or personal representative (if the owner died), and certain lienholders. This article explains how to locate and claim those surplus funds, the typical documents you will need, and what to do if the county refuses or if there are competing claims.

Important statutory reference

Oregon’s statutes governing tax foreclosures and collections appear in the Oregon Revised Statutes chapter addressing delinquent taxes and foreclosure procedures. For the statutory framework, see the Oregon Revised Statutes on tax liens and foreclosure: ORS chapter 312. You should also check county foreclosure sale notices and the county treasurer/sheriff’s instructions for claiming surplus proceeds.

Step-by-step: How to claim surplus funds in Oregon

1. Confirm whether there are surplus funds.

   Contact the county tax collector/treasurer and the county sheriff (the office that usually conducts the sale) where the property is located. Ask whether the tax foreclosure sale generated surplus proceeds and whether the county is holding those funds. Many counties publish sale results and post-sale accounting online or will confirm by phone or email.

2. Identify the proper claimant.

   Which party has priority depends on the legal status of the property and recorded interests. In practice the primary claimants are:

   • The former record owner (or the owner’s estate or personal representative if the owner is deceased).
   • Recorded lienholders or encumbrancers who have enforceable claims that survive the foreclosure (their priority depends on recording dates and statute).
   • Other parties with a legally recognized interest (for example, a purchaser who holds a valid recorded interest).

   If your mother has died and the house was titled in her name, either the personal representative of her estate (if there is an opened probate) or her heirs (if a court has determined heirship or the county accepts an affidavit of heirship) will usually be the correct claimant.

3. Gather required documents.

   Counties typically require verified documents to prove identity and entitlement. Common documents you should obtain and copy include:

   • Certified copy of the decedent’s death certificate (if applicable).
   • Recorded deed(s) showing ownership history.
   • Letters testamentary or letters of administration (if the estate is in probate) naming the personal representative.
   • If there is no probate, a certified copy of a court order establishing heirship, or a notarized affidavit of heirship where accepted by the county.
   • Government-issued photo ID for the person submitting the claim.
   • Any written proof of liens or mortgages (if you are a lienholder claiming funds).
   • A signed claim form or affidavit required by the county (many counties have their own form).
4. Submit the claim to the county.

   Ask the county treasurer or sheriff which office is handling distribution and what form to use. Follow the county’s instructions exactly: attach certified copies of the documents above, provide a mailing address for the payment, and sign any required affidavits under penalty of perjury. Keep copies of everything and send materials by a tracked method when possible.

5. Resolve competing claims or refusals.

   If the county receives multiple claims, disputes the documents, or refuses to pay, your options include:

   • Providing additional documentation (probate letters, a court order, or a more detailed affidavit).
   • Filing a claim in the county circuit court asking the court to determine the rightful recipient of the surplus proceeds (for example, an interpleader or quiet title/recovery petition).
   • Hiring an attorney to represent the estate or heirs, particularly where sums are large or claimants compete.

Practical timing and deadline notes

Counties and state rules can impose deadlines or procedural requirements. Act quickly: the earlier you file a complete claim, the better. Unclaimed surplus funds may eventually be transferred to state unclaimed property or otherwise handled under state law; to check whether funds have already been turned over, visit the Oregon State Treasury unclaimed property search at unclaimed.oregon.gov.

If the owner died and you are an heir

If your mother passed away before or after the sale, you will usually need either:

• Letters testamentary/letters of administration appointing you as the personal representative; or
• A court order recognizing you as an heir; or
• An affidavit of heirship if the county accepts it for relatively small amounts (rules vary by county).

If the estate is open in probate, the personal representative generally submits the claim on behalf of the estate. If there was no probate and the amount is substantial, opening a probate or a small estate proceeding may be necessary to conclusively establish entitlement.

Common complications

• Competing claimants (multiple heirs, unpaid lienholders) may force the county to seek court guidance.
• Missing or incomplete documentation may delay or defeat a claim.
• Third-party companies offer to claim surpluses for a fee; be cautious and read any contract carefully before signing.
• Counties differ in internal procedures. Always verify the county’s specific requirements.

Helpful hints

• Contact the county treasurer/tax collector and the county sheriff first — they can confirm whether surplus funds exist and what form to use.
• Collect certified documents early (death certificate, probate letters, recorded deeds). These take time to obtain.
• Keep an organized packet: cover letter, copies of IDs, certified documents, and a clear statement of the legal basis for your claim.
• Do not sign over your claim to a company without independent legal advice. Fee agreements can be expensive and sometimes unnecessary.
• If the amount is significant or other parties dispute entitlement, consult an Oregon attorney experienced in probate or real estate/tax foreclosure matters.
• Check the Oregon State Treasury unclaimed property site if the county says it no longer holds funds: unclaimed.oregon.gov.

When to get legal help

Seek an attorney if:

• The county refuses to release funds despite submission of complete documentation;
• There are multiple competing claimants and a dispute cannot be resolved administratively;
• The estate requires probate or court action to establish heirship before the county will pay;
• The surplus is large enough that the cost and complexity of litigation would be justified.

An attorney can file the necessary pleadings in Oregon circuit court (such as a petition to determine rights to proceeds or an interpleader) and help recover funds when administrative routes fail.

Key takeaways

• Start by confirming existence of surplus with the county treasurer/sheriff.
• Identify who has legal priority — former owner, heirs, or lienholders — and gather certified documents proving that status.
• Follow the county’s claim process exactly and keep copies of everything.
• If the county refuses or competing claims exist, be prepared to seek relief from the circuit court or hire an attorney.

Disclaimer: This information is educational only and does not constitute legal advice. It is not a substitute for advice from a qualified attorney licensed in Oregon. If you need legal advice about claiming surplus funds or probate issues, consult a licensed Oregon attorney.