Clackamas County $2.47M Foreclosure Class Action Settlement

Update: The settlement was granted final approval on March 23, 2026.

Individuals who owned real property, are the heir or successor of someone who owned real property or held a valid lien on real property that Clackamas County foreclosed on and sold or retained for unpaid real property taxes may qualify to submit a claim for a cash payment from a class action settlement.

Clackamas County agreed to pay $2,466,403.68 to settlement a class action lawsuit alleging it 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 a claim to receive an equal pro rata cash payment from the net settlement fund. The settlement administrator will determine the final payment amount by the total number of valid claims filed.

• If the administrator receives multiple valid claims for the same property, it will divide the settlement payment among the claimants.

Class members with properties Clackamas County still owns 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

• All class members must provide the member ID from their settlement notice 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 a copy of a trust.
• Property owners submitting a claim should include supporting documentation, which may include deeds, mortgages, property tax statements or notices of assessment.
• Lienholders submitting a claim should include supporting documentation, which may include lien documents, assignments of liens or statements of balances owed at the time of foreclosure.

Payout options

• Electronic payment (online claims only)
• Paper check mailed to the address provided

$2.47 million settlement fund breakdown

The $2,466,403.68 settlement fund includes:

• Settlement administration costs: Up to $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 future sales generate additional surplus proceeds before the end of the claims period.

Important dates

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

When is the Clackamas County foreclosure settlement payout date?

The settlement administrator will issue payments to approved claimants after it completes claim processing, the court grants final approval of the settlement and the claim deadline passes.

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