ORS Chapter 312
Chapter 312 — Foreclosureof Property Tax Liens
2009 EDITION
FORECLOSUREOF PROPERTY TAX LIENS
REVENUEAND TAXATION
312.005 “Districtattorney” described
312.010 Whenreal property subject to tax foreclosure; listing other charges with taxes
312.020 Supervisionby Department of Revenue; enforcement
312.030 Annualforeclosure list; suppression of certain public employee names; interest ontaxes in list
312.040 Noticeof proceeding; service
312.050 Institutingforeclosure proceedings
312.060 Applicationfor judgment foreclosing lien; effect and correction of irregularity,informality, omission or other error
312.070 Answerand defense to application by person interested
312.080 Summaryhearing
312.090 Judgment;lien; interest
312.100 Orderfor sale of properties to county; certified copy of judgment as certificate ofsale
312.110 Removalof property from foreclosure proceedings
312.120 Periodduring which property held by county; redemption; assessment during redemptionperiod; redemption of part of property
312.122 Reducedredemption period when property subjected to waste or abandonment; hearing;notice; reasonable inquiry
312.125 Noticeto owner or lienholder of expiration of period of redemption; contents; mailing
312.130 Releaseof claims of county by redemption; entries by tax collector; certificate ofredemption
312.140 Noticeof foreclosure list to lienholder
312.150 Effectof failure to give notice to lienholder when requested
312.160 Lienholderpaying taxes or redeeming gets additional lien for amount paid
312.170 Municipalor other public corporation removing property from foreclosure list orproceeding or redeeming; additional lien
312.180 Possessionduring redemption period; forfeiture for waste
312.190 Generalnotice of expiration of redemption period
312.200 Deedto county
312.210 Appeal
312.214 Publicpolicy relating to title obtained by county by tax foreclosure
312.216 Conclusivepresumptions of notice resulting from tax foreclosure
312.218 Constructivepossession by county; notice; remedy of ejectment
312.220 Judgmentas evidence and estoppel
312.230 Limitationson proceedings affecting foreclosure sale; payments required with firstpleading; effect as statute of prescription
312.240 Vacationof judgment; determining value of improvements by purchaser and renderingjudgment therefor
312.250 Certainrights of municipal corporations not affected by ORS 312.010 to 312.120 and312.130 to 312.240
312.260 Landsacquired by county by tax foreclosure where title fraudulently concealed fromowner
312.270 Titleof county purchasing property; title of purchaser on resale
312.290 Saleof property on which there are unpaid assessments applicable to defaulted bondsof a city or town
312.300 Effectof irregularities and omissions on sales made pursuant to ORS 312.270 or312.290
312.310 Acceptingdeed where timber fire reduces value of property; sale of timber or propertyacquired
312.360 Taxsales to counties or other public corporations validated; effect of omissionsor defects
312.370 Certaintax sales validated
312.380 Effectof failure to issue certificate of sale prior to 1939
312.390 Requestby lienholder for notice of proposed sale for delinquent city assessments orliens
312.400 Givingnotice to lienholder
312.410 Effectof failure to give notice when requested
312.420 Applicationof ORS 312.390 to 312.410 to other than treasurer of city
312.990 Penalties
312.005“District attorney” described. As used in this chapter, unless thecontext requires otherwise, “district attorney” shall include county counselappointed pursuant to ORS 203.145. [1971 c.245 §2]
312.010When real property subject to tax foreclosure; listing other charges withtaxes.(1) Except as otherwise provided by law, real property within this state issubject to foreclosure for delinquent taxes whenever three years have elapsedfrom the earliest date of delinquency of taxes levied and charged thereon.
(2)All special assessments, fees or other charges charged against the propertysubject to foreclosure which are due and unpaid for any year or years for whichad valorem taxes are delinquent and for which there is no other provision oflaw for their payment out of the foreclosure proceeding, shall be listed withthe delinquent ad valorem taxes in the foreclosure proceedings and foreclosedand collected as a part of such proceedings in the same manner as thedelinquent ad valorem taxes. In any event, if three years have elapsed sincethe special assessment, fee or charge has been placed on the tax roll forcollection and the assessment, fee or charge remains unpaid, it may be includedin the next foreclosure proceeding and foreclosed and collected as part of suchproceeding. [Amended by 1965 c.344 §41]
312.020Supervision by Department of Revenue; enforcement. (1) TheDepartment of Revenue shall have general supervision and control over taxforeclosure proceedings under ORS 312.010 to 312.120 and 312.130 to 312.240 tothe end that such proceedings shall be conducted in a uniform and orderlymanner in all counties of the state.
(2)Whenever any district attorney fails to institute or complete foreclosureproceedings in the manner required by this chapter, the department may callupon the Attorney General to institute or complete such proceedings. For thispurpose, the Attorney General shall have the same powers and authority as adistrict attorney under this chapter. All costs incurred by the AttorneyGeneral shall be borne by the county in which the foreclosure proceedings areundertaken. Upon presentation by the Attorney General to the county governingbody of a certified, itemized statement of costs, the governing body shallorder payment to the Attorney General out of any available funds of the county.If no payment is made within 30 days thereafter, the Attorney General shallsubmit to the Secretary of State a certified, itemized statement of such costsand the Attorney General shall be reimbursed upon the order of the Secretary ofState to the State Treasurer, from the county’s share of the state’s cigaretteand liquor revenues. [Amended by 1971 c.245 §3]
312.030Annual foreclosure list; suppression of certain public employee names; intereston taxes in list.(1) Within two months after the day of delinquency of taxes of each year thetax collector shall prepare a list of all real properties then subject toforeclosure. The list shall be known as the foreclosure list and shall contain:
(a)The names of the several persons appearing in the latest tax roll as therespective owners of tax-delinquent properties. If the owner of the property isan attorney or public safety officer who has applied for an exemption under ORS192.501, the list shall state that the name of the owner is suppressed by law.
(b)A description of each such property as it appears in the latest tax roll.
(c)The year or years for which taxes are delinquent on each property.
(d)The principal amount of the delinquent taxes of each year and the amount ofaccrued and accruing interest thereon to the day of publication.
(2)Thereafter, and until judgment is obtained pursuant to ORS 312.090, interestshall be charged and collected on each of the several amounts of taxes includedin the foreclosure list at the rate provided in ORS 311.505 (2). [Amended by1975 c.704 §5; 1979 c.703 §11; 1987 c.311 §3; 2007 c.687 §4]
312.040Notice of proceeding; service. (1) Notice of each foreclosureproceeding shall be given by publication and by both certified and regularfirst class mail as provided in this section:
(a)Notice shall be given by one publication of the foreclosure list in a newspaperof general circulation in the county, to be designated by the county court orboard of county commissioners. The price charged by the newspaper shall be atthe legal rate as provided by law. A copy of the newspaper notice shall bemailed by the county to each incorporated city in the county.
(b)In addition, notice of the foreclosure proceeding shall be sent by certifiedand regular first class mail to the owner or owners, as shown in the countydeed records, of each property included on the foreclosure list at the addressor addresses as reflected in the county records under ORS 93.260, 311.555 or311.560.
(2)Each notice given under subsection (1) or (4) of this section shall identifythe particular property or properties that is the subject of the notice.
(3)All persons owning or claiming to own, or having or claiming to have, anyinterest in any property included in the foreclosure list are required to takenotice of such proceeding and of all steps thereunder.
(4)If it is deemed expedient to do so, notice of the institution of theforeclosure proceeding may be given by personal service. Notice by personalservice shall be in lieu of service by publication and certified and regularfirst class mail required by subsection (1) of this section as to the defendantor defendants so served, and it shall not be necessary to include in thepublication of the foreclosure list the names of such defendants or thedescriptions or other matters relating to their respective properties. [Amendedby 1957 c.68 §1; 1983 c.657 §9; 1985 c.613 §29; 1987 c.311 §4]
312.050Instituting foreclosure proceedings. (1) On the day which is three monthsafter the day of delinquency of taxes of the latest year, the tax collector,with the assistance of the district attorney, shall institute proceedings toforeclose the liens for all the delinquent taxes against each of the severalproperties included in the foreclosure list.
(2)One general proceeding shall be brought on the part of the county to foreclosethe tax liens against each of the properties included in the foreclosure list.The person whose name appears in the latest tax roll as the owner of anyproperty therein described shall be considered and treated as the owner of theproperty. Each such proceeding shall be a proceeding in rem against theproperty itself. If in any tax roll it appears that the owner of any propertyis unknown, or that the name of the owner is exempt from disclosure under ORS191.501, then the property shall be proceeded against as belonging to anunknown owner. [Amended by 1979 c.703 §12; 1987 c.311 §5; 2007 c.687 §5]
312.060Application for judgment foreclosing lien; effect and correction ofirregularity, informality, omission or other error. (1) Applicationfor judgment foreclosing any tax lien shall be in writing, shall be verified,and shall contain a succinct statement of the cause of suit. All amendments maybe made that are permissible in any civil action. The application for judgment,together with a certified copy of the foreclosure list, shall be filed with theclerk of the court on the day of the first publication of the foreclosure list.
(2)No assessment of property or charge for taxes shall be considered invalidbecause of:
(a)An irregularity in an assessment roll.
(b)An assessment roll not having been made, completed or certified within the timeprescribed by law.
(c)The property having been listed or charged in an assessment or tax roll withoutany name, or with a name other than that of the owner.
(3)No error or informality on the part of any officer in connection withassessment, equalization, levy or collection shall vitiate or affect theassessment of the property or the taxes thereon.
(4)Any such irregularity, informality, omission or other error may, in thediscretion of the court, be corrected to conform to law. [Amended by 1979 c.284§137; 1989 c.411 §1; 2003 c.46 §28; 2003 c.576 §414]
312.070Answer and defense to application by person interested. Any personinterested in any real property included in the foreclosure list may file ananswer and defense to the application for judgment within 30 days after thedate of the first publication of the foreclosure list, exclusive of the day ofthe first publication. The answer and defense shall be in writing under oathand shall specify the particular cause of objection. [Amended by 2003 c.576 §415]
312.080Summary hearing.The court shall examine the application for judgment. If answer and defense isfiled by any defendant or other interested person, the matter shall be heard ina summary manner without other pleading. [Amended by 2003 c.576 §416]
312.090Judgment; lien; interest. The court shall give judgment for the delinquenttaxes and interest appearing to be due on the several parcels of real propertydescribed in the application, and shall enter a judgment requiring that theseveral liens of such taxes be foreclosed. The judgment shall be a severaljudgment against and a lien on each parcel of property included therein. Theseveral judgment shall bear interest at the legal rate from the date of entrythereof. [Amended by 2003 c.576 §417]
312.100Order for sale of properties to county; certified copy of judgment ascertificate of sale.The court shall order that the several properties, against which the judgmentis entered, shall be sold directly to the county for the respective amounts oftaxes and interest for which the properties severally are liable. The clerk ofthe court shall deliver to the tax collector a certified copy of the judgment,included in which shall be a list of the properties so ordered sold, with theseveral amounts due thereon. The certified copy shall constitute a certificateof sale to the county of the several properties described in the judgment andno other certificate need be issued. [Amended by 1989 c.411 §2; 2003 c.576 §418]
312.110Removal of property from foreclosure proceedings. At any timeprior to judgment, any parcel of real property may be removed from theforeclosure proceeding by payments such as would have prevented inclusion ofthe property in the foreclosure list, plus any additional interest or penaltyaccrued; except that after the first publication of the foreclosure list anyperson seeking to remove any property from the foreclosure proceeding shallpay, in addition to the particular amounts of taxes and interest otherwiserequired, a penalty of five percent of the total amount of taxes and interestcharged against the property. The penalty and fee shall be in lieu of all publicationcosts and other charges in connection with the foreclosure proceeding. Onreceipt of the payments as to a particular property, prior to the filing of theapplication for judgment, the tax collector shall make the proper entries inthe tax roll and shall remove the property from the foreclosure list andproceeding. Subsequent to filing of the application for judgment, no propertymay be removed from the foreclosure list and proceeding except on order enteredby the court. The removal of any property from the foreclosure list andproceeding, as provided in this section, does not release the property from thelien of any unpaid tax thereon, but the unpaid taxes shall remain valid andsubsisting liens as though the foreclosure proceeding had not been instituted. [Amendedby 1983 c.472 §1; 1987 c.311 §6; 2003 c.576 §419]
312.120Period during which property held by county; redemption; assessment duringredemption period; redemption of part of property. (1) Except asprovided in ORS 312.122, all real properties sold to the county under ORS312.100, shall be held by the county for the period of two years from and afterthe date of the judgment of foreclosure, unless sooner redeemed.
(2)During the two-year period any person having an interest in the property at thedate of the judgment of foreclosure, or any heir or devisee of such person, orany person holding a lien of record on the property, or any municipalcorporation having a lien on the property, may redeem the property by paymentof the full amount applicable to the property under the judgment, with interestthereon as provided by law, plus a penalty of five percent of the total amountapplicable to the property under the judgment and a fee as specified undersubsection (5) of this section. The penalty of five percent and fee shall be inlieu of all costs chargeable against the property in connection with theforeclosure proceeding. The fee shall be used to defray the costs, among othercosts, incurred by the county to provide the notices of redemption periodexpiration to lienholders and others required under ORS 312.125.
(3)Property so redeemed shall be subject to assessment for taxation during theperiod of redemption, as though it had continued in private ownership.
(4)Any person holding a mortgage or other lien of record covering a part only of aparticular parcel of real property included in the judgment of foreclosure mayredeem such part by payment of the proportionate amount applicable theretounder the judgment.
(5)The fee specified by this subsection is as follows:
(a)If the property is redeemed before the date the notice by certified mailrequired by ORS 312.125 is given, $50.
(b)If the property is redeemed on or after the date the notice by certified mailrequired by ORS 312.125 is given, the greater of $50 or the actual cost to thecounty for a title search and other expenses related to obtaining a titlesearch. [Amended by 1983 c.472 §2; 1987 c.311 §7; 1989 c.687 §2; 1999 c.22 §1;2003 c.576 §420]
312.122Reduced redemption period when property subjected to waste or abandonment;hearing; notice; reasonable inquiry. (1) A county may by ordinance providethe means to require the tax collector of the county to deed to the countypursuant to ORS 312.200 any real property sold to the county under ORS 312.100after the expiration of the 30-day period provided in subsection (2) of thissection if:
(a)The property is subjected to waste that results in a forfeiture to the countyof the right to possession of the property under ORS 312.180; or
(b)The property is not occupied by the owner or any person or entity that appearsin the records of the county to have a lien or other interest in the propertyfor a period of six consecutive months, and the property has suffered asubstantial depreciation in value or will suffer a substantial depreciation invalue if not occupied.
(2)(a)Upon determining that real property sold to the county under ORS 312.100 may besubject to waste or abandonment as provided in subsection (1) of this section, thecounty shall set a date, time and place within the county for a hearing for thepurpose of determining whether the property should be deeded to the countypursuant to subsection (1) of this section.
(b)The owner and any person or entity that appears in the records of the county tohave a lien or other interest in the property shall be given an opportunity tobe heard at the hearing provided in paragraph (a) of this subsection.
(c)If the county determines after the hearing provided in paragraph (a) of thissubsection that the property is subject to waste or abandonment as provided insubsection (1) of this section, the county governing body shall provide thatany rights of possession the owner may have in the property are forfeited anddirect the property be deeded to the county by the tax collector of the countyafter expiration of a period of 30 days from the date of the action of thecounty governing body determining property subject to forfeiture unless it issooner redeemed by the owner or any person or entity that then appears in therecords of the county to have a lien or other interest in the property. Allrights of redemption with respect to the real property described in that deedshall terminate on the execution of the deed to the county.
(d)The county shall, in its ordinance, provide for procedures for the hearingrequired under this subsection that are compatible with the requirements of dueprocess of law.
(3)Not less than 30 days prior to the hearing provided in subsection (2) of this section,the county shall notify the owner and any person or entity that then appears inthe records of the county to have a lien or other interest in the property ofthe hearing. The notice shall contain:
(a)The date, time and place of the hearing provided for in subsection (2) of thissection;
(b)The date of the judgment;
(c)The normal date of expiration of the period of redemption under ORS 312.120;
(d)A warning to the effect that if the county determines that the property issubject to waste or abandonment as provided in subsection (1) of this section,the property will be deeded to the county immediately after the expiration of30 days from the date of the county governing body action so determining andthat every right or interest of any person in the property will be forfeitedforever to the county unless the property is redeemed within that 30-dayperiod;
(e)A legal description of the property and a tax account number; and
(f)The name of the owner as it appears on the latest tax roll.
(4)The notice required to be given under subsection (3) of this section shall begiven by both certified mail and by regular first class mail.
(5)(a)If the notice required under subsection (3) of this section is to be given toan owner, the notice shall be addressed to the owner or owners, as reflected inthe county re