Clackamas County $2.47M Foreclosure Class Action Settlement

Individuals who owned real property, or who are the heir or successor of someone who owned real property, or who held a valid lien on real property that was foreclosed on and sold or retained by Clackamas County for unpaid real property taxes, may qualify to submit a claim for a payment from a $2.47 million class action settlement if the redemption period for that property lapsed between Oct. 12, 2017, and Jan. 12, 2024.

Clackamas County has agreed to pay $2,466,403.68 to settlement a class action lawsuit. The plaintiff claimed that the county failed to return surplus proceeds from tax-foreclosed properties to former owners or lienholders, or retained properties worth more than the tax debt without providing compensation.

Who can file a claim for a foreclosure settlement payout?

Class members must meet the following criteria:

• All individuals and entities, as well as their heirs, successors, and assignees, who owned, had an ownership interest in, or held a valid lien on real property that Clackamas County obtained through foreclosure for unpaid real estate taxes or other county or local government taxes, fees, and penalties.
• The property is listed in Exhibit A the schedule of eligible properties available with the official settlement agreement.
• The county either sold the property for an amount greater than the unpaid taxes, fees, and costs, with the statutory redemption period expiring between Oct. 12, 2017, and Jan. 12, 2024, or still owns the property as of the settlement agreement effective date and may sell it for more than the unpaid taxes, fees, and costs, for which the statutory redemption period expired during the same period.

How much will the settlement payments be?

• Pro rata cash payment: Class members can submit to receive an equal pro rata cash payment from the net settlement fund. Final payment amount will be determined by the total number of valid claims filed.
• If multiple valid claims are submitted for the same property, the settlement payment will be divided among the claimants.

• Class members with properties still owned by Clackamas County may redeem the property by paying the owed taxes, costs, and interest.

How to claim a class action rebate

To claim a settlement payment, class members can file a claim online or print the PDF claim form to complete and mail to the settlement administrator. Class members with questions or needing assistance filing claim should contact the settlement administrator or class counsel directly.

Settlement administrator's mailing address: Lynch v. Multnomah County (Clackamas County) c/o Kroll Settlement Administration LLC, P.O. Box 225391, New York, NY 10150-5391

The claim deadline is May 25, 2026.

Required proof and claim information

• Class Member ID required to submit a claim.
• Heirs or successors submitting a claim must provide supporting documentation, which may include a will, probate documents, death certificates or birth certificates.
• Personal representatives or trustee of an estate or trust submitting a claim must provide supporting documentation, which may include power of attorney paperwork and copy of trust.
• It is recommended that property owners submitting a claim include supporting documentation, which may include deed, mortgage, property tax statement or notice of assessment.
• It is recommended that lienholders submitting a claim include supporting documentation, which may include lien documents, assignment of lien or statement of balance owing at the time of foreclosure.

Payout options

• Electronic payment, only available with online claim submissions
• Paper check, mailed to the address provided

$2.47 million settlement fund breakdown

The current settlement fund of $2,466,403.68 will include

• Settlement administration costs: Not to exceed $150,000
• Attorneys’ fees: Up to $739,921.10
• Service awards to class representatives: Amount to be presented to the court for approval at a later date
• Payments to approved claimants: Remaining settlement funds

The current total settlement fund totals $2,466,403.68. The fund may increase if additional surplus proceeds are generated from future sales before the end of the claims period.

Important dates

• Deadline to file a claim: May 25, 2026
• Opt-out deadline: March 13, 2026
• Fairness hearing: March 18, 2026

When is the Clackamas County foreclosure settlement payout date?

Payments will be issued to approved claimants after the court grants final approval of the settlement, the claim deadline passes and claim processing is completed.

Why is there a class action settlement?

The class action lawsuit alleged that Clackamas County violated the rights of property owners and lienholders by failing to return surplus proceeds from tax-foreclosed properties or by retaining properties worth more than the tax debt without compensating the former owners.

Clackamas County denies the allegations but agreed to settle to avoid the expense and risk of continued litigation.

Sources

1. Official class action settlement notice
2. Official settlement website
3. Official claim form