Commissioners approve settlement in Lynch foreclosure case, set auction schedule for retained properties

Yamhill County commissioners unanimously approved a written settlement agreement resolving Lynch v. Yamhill County during their May 7 meeting, authorizing the county administrator to sign and directing staff to submit the deal to the court under Federal Rule of Civil Procedure 23.

Michael McGeen, introduced to the board as assisting in settlement negotiations, presented the key terms. He said the agreement treats about 10 older foreclosure sales as having generated $166,218.06 in surplus and that four newer sales generated $9,421.35; the parties applied the typical 9% statutory interest to the newer surpluses, producing interest of $3,830.77. McGeen said those components produced a subtotal of roughly $13,252 tied to the newer transactions and that the county’s out‑of‑pocket payment under the agreement is approximately $179,000, which he said will be due within 30 days of signing. “There’s the lump sum payment of a 179,000, and then there’s the obligation to continue to auction and sell the retained properties,” McGeen told commissioners.

The agreement also identifies 13 retained properties that the county must offer for public auction. McGeen said the county must make reasonable efforts to sell retained properties for 12 months after the signature date; at least one retained property must be offered within three months. If properties do not sell within the 12‑month window, the county has an ongoing obligation to attempt arm’s‑length sales or permit redemption by prior owners under the settlement’s terms.

Commissioner Starett asked whether two properties previously transferred to the Affordable Housing Corporation had been treated as sold for purposes of the settlement; McGeen said the parties had stipulated to fixed surplus amounts of $10,000 and $14,000 for those parcels and that, for the settlement, they are considered sold at arm’s length. County Administrator Ken Huffer noted the foreclosure refund account currently holds a little more than $40,000 and said he would confirm exact balances and accounting details before the county remits funds.

Chair Johnson moved approval and added authorization for County Administrator Ken Huffer to sign the agreement on the county’s behalf. The motion passed unanimously.

What happens next: McGeen said the county and plaintiffs have tentatively agreed to submit the settlement to the court by the following Monday and that the county would have until early June to deposit the settlement funds into the settlement account. The agreement will require the board and county staff to manage auctions of the retained properties and coordinate distribution of any net surpluses as directed by the court administrator and the plaintiffs’ class.