Multnomah County $3.5M Property Foreclosure Settlement

Individuals who owned, had an ownership interest in or held a valid lien on real property that Multnomah County, Oregon, foreclosed on and sold between Oct. 12, 2017, and June 25, 2025, may qualify to claim a cash payment from a class action settlement.

Multnomah County agreed to pay $3,515,759.25 to resolve a class action lawsuit alleging it failed to return surplus proceeds from tax-foreclosed property sales to former owners and lienholders. The lawsuit claimed the county retained funds exceeding the amount owed for taxes, fees and costs after property foreclosures rather than distributing the surplus to those with a legal interest in the property.

Who are the class members?

Individuals and entities may be eligible to participate in the settlement if they meet all of the following criteria:

• They owned, had an ownership interest in or held a valid lien on real property in Multnomah County, Oregon.
• Multnomah County foreclosed on the property to satisfy unpaid real estate taxes or other local government taxes, fees or penalties.
• The county sold the property for more than the amount the property owner owed in taxes, fees and costs (meaning there were surplus proceeds).
• The statutory redemption period for the property expired between Oct. 12, 2017, and June 25, 2025.

Eligible class members include:

• Individuals or entities who held title or an ownership interest at the time of foreclosure.
• Lienholders (such as mortgage lenders) with a valid, unsatisfied lien at the time of foreclosure.
• Heirs, successors or assignees of the above provided they can show their relationship or authority.
• Personal representatives or trustees of an estate or trust with an interest in the property.

If more than one person or entity has a valid claim to the same property (for example, co-owners or multiple lienholders), each claimant may be entitled to a share of the proceeds based on their legal interest.

Class members can see if their property is included in the settlement by checking the list of eligible properties.

How much is the foreclosure payout?

Pro rata payment: The total settlement fund is $3,515,759.25, which consists of $2,402,797.40 in surplus proceeds plus $1,112,961.85 in statutory interest (calculated at 9% from the date ownership rights were terminated).

Each eligible class member who submits a valid claim will receive a pro rata share of the net settlement fund after deductions for attorneys’ fees, settlement administration costs and service awards to class representatives.

The specific amount each claimant receives depends on several factors:

• The total number of valid claims submitted
• The surplus proceeds attributable to each property
• The number of claimants for each property (such as co-owners, heirs or lienholders)
• If there are multiple valid claims for the same property, the settlement administrator will divide the proceeds for that property among claimants according to their legal interests.

The settlement administrator may donate any funds remaining after all valid claims and costs for housing assistance or other programs in Multnomah County pending court approval.

How to claim a settlement payment

Class members can file the online claim form or download, print, complete and mail the PDF claim form to the settlement administrator. The claim deadline is Jan. 12, 2026.

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

What proof and documentation is needed to submit a claim?

All class members must provide the class member ID located on their settlement notice.

Class members must also provide documentation to establish their interest in the property. The required proof depends on the type of claimant:

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

Payout options

• Electronic payment (online claims only)
• Paper check

$3.52 million settlement fund breakdown

The $3,515,759.25 settlement fund comprises $2,402,797.40 in surplus proceeds plus $1,112,961.85 in statutory interest. The breakdown is as follows:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $1,160,200.55
• Attorneys' expenses: To be determined
• Service awards to class representatives: To be determined
• Payments to eligible class members: The remaining balance

Important dates

• Opt-out deadline: Nov. 3, 2025
• Fairness hearing: Nov. 10, 2025
• Deadline to file a claim: Jan. 12, 2026

When is the Multnomah County foreclosure settlement payout date?

The settlement administrator will distribute payments after the court grants final approval of the settlement and resolves any appeals.

Why did this class action settlement happen?

The class action lawsuit alleged Multnomah County violated the rights of property owners and lienholders by failing to return surplus proceeds from tax-foreclosed property sales. Instead, the plaintiffs claim the county kept the excess funds after satisfying unpaid taxes, fees and costs.

The parties agreed to settle to avoid the expense and uncertainty of further litigation.

Sources

1. Claim form
2. Class notice
3. Settlement agreement%20Pl%20Motion%20for%20PA%20-%20Ex%201%20Settlement%20Agreement%20-%20Signed.PDF)
4. Settlement FAQ