Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Property Tax Foreclosure topic
No spam. Unsubscribe anytime.
New state rule on surplus proceeds pushes Morrow County to formalize foreclosure-auction process
Summary
Under HB 2089 counties must send surplus proceeds from tax-foreclosed sales to the Oregon State Treasury within 60 days. Morrow County staff will develop an annual or semiannual auction schedule, track county maintenance costs to include in liens, and coordinate with assessor and sheriff on the process.
County Administrator Matt briefed commissioners on HB 2089, which requires counties to remit surplus proceeds from tax-foreclosed property sales to the Oregon State Treasury's unclaimed-property process within 60 days of sale and to file associated transaction reports.
Matt said the law resolves debates over when foreclosed property sales produce proceeds above the tax lien amount and that the Treasury will hold unclaimed funds for owners. The county must now decide how to track and apply administrative and maintenance costs (mowing, remediation, attorney fees) so those costs are properly added to the lien before surplus calculation.
Staff will work with the assessor, sheriff and legal counsel to set a consistent auction schedule (Matt proposed an annual date with an optional semiannual date) and to prepare internal processes for tracking costs, notices and reporting to the State Treasury. The sheriff's office noted standard procedures exist for auction execution and the State Sheriffs' Association has guidance; county staff said they will bring a recommended process back to the board in the second meeting in September.
Commissioners discussed whether to require a "clean bill of health" (code compliance) or allow property sales with disclosure for sites that may need remediation (for example, an old gas station with buried tanks). Staff said some remediation has been completed on the site in question and they will report back with details.
