Lane County $1.35M Tax Foreclosure Class Action Settlement

Individuals who held, or are the heir or successor to someone who held, an ownership interest in or a valid lien on real property in Lane County, Oregon, that the county foreclosed on for unpaid property taxes, and the statutory redemption period for that property expired between Oct. 12, 2017, and Dec. 30, 2025, may be eligible to submit a claim for a cash payment from a class action settlement.

Lane County agreed to pay $1.35 million to settle claims that it unlawfully retained surplus equity from tax-foreclosed properties, rather than returning excess proceeds to former owners or lienholders.

Who can file a claim?

Class members are:

• Individuals who owned, or had an ownership interest in or held a valid lien on real property in Lane County that the county foreclosed upon to satisfy unpaid real estate taxes or other local government taxes, fees or penalties.
• Their property was either:
• Sold by Lane County for more than the amount owed in taxes, fees and costs, or
• Is still owned by Lane County and may be sold for a surplus, or
• Was donated without a public auction to a housing agency, non-profit housing-related organization or for low-income housing

• The statutory redemption period for the property expired between Oct. 12, 2017, and Dec. 30, 2025.
• They are an heir, successor or assignee of someone who met any of the above criteria.

A detailed list of eligible properties is available in the settlement agreement the settlement website.

How much are settlement payments?

Pro rata cash payment: Class members can submit a claim to receive a pro rata cash payment from the net settlement fund. The final payment amount depends on the number of valid claims submitted and the surplus proceeds associated with each specific property.

How to claim a class action rebate

To receive a settlement payment, eligible class members must submit an online claim form or print and complete the PDF claim form and mail it to the settlement administrator.

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

The deadline to submit a claim is Feb. 22, 2027.

Required claim information and proof

• To submit a claim online or by mail, class members must provide the class member ID from the settlement notice they received.
• Heir or successor claimants must provide supporting documentation showing their relationship to the interest holder in the foreclosed property.
• Trustee or personal representative claimants must provide supporting documentation showing their appointment or power of attorney.

The following documentation and proof listed may not be required but will help in processing claims quickly:

• Property owners: Deeds, mortgages, property tax statements, notices of assessment and trust documents
• Heirs/successors: Wills, obituaries, probate documents, death certificates, birth certificates, marriage documents, letters of testamentary and court orders
• Lienholders: Lien documents at time of foreclosure, assignment of lien, certificate of good standing and statement of balance owing at time of foreclosure
• Agents: Power of attorney, court orders of appointment and agency agreement

Payout options

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

$1.35 million settlement fund breakdown

The $1,348,311.60 settlement fund includes:

• Settlement administration costs: Up to $100,000
• Attorneys’ fees: Up to $337,077 plus costs and expenses
• Service awards to class representative: To be presented to the court for approval at a later date
• Payments to eligible claimants: Remainder of the fund
• Residual funds: If any funds remain after all payments, the settlement administrator will distribute that money to the Lane County Legal Aid Office of Oregon Law Center or similar programs, as approved by the court.

Important dates

• Deadline to opt out: Nov. 24, 2026
• Deadline to file a claim: Feb. 22, 2027
• Final approval hearing: Dec. 2, 2026

When is the Lane County tax foreclosure settlement payout date?

The settlement administrator will issue payments after the court grants final approval of the settlement and claim processing is completed.

Why is there a class action settlement?

The plaintiffs alleged Lane County violated property owners’ and lienholders’ rights by keeping surplus equity from tax-foreclosed properties instead of returning the excess funds to those entitled to them.

Lane County denies any wrongdoing but agreed to settle to avoid the costs and uncertainties of further litigation.

Sources

1. Class notice
2. Settlement website FAQ page
3. Claim form
4. Settlement agreement