Counties across Oregon are required to begin foreclosure proceedings if the oldest unpaid tax year is three or more years delinquent. Following foreclosure, there is a two year redemption period during which certain interested parties may bring the account current. At the end of the two years, if not brought current, the property is deeded to the county and the county may sell the property.
Be careful though, that great deal on a property at a tax foreclosure sale may not be such a great deal after all. The property is sold “as is” and you will most likely not be able to inspect the property prior to the sale. What looks good from the outside may not be as easy on the eyes, or wallet, once you get inside.
And once you actually get the deed to the property, do not count on getting title insurance. Due to perceived conflicts between Oregon statutes and U.S. Constitutional rights, Title companies are reluctant to insure title to properties purchased at tax foreclosure sales for five or even 10 years or more after being purchased at a tax foreclosure sale. Some title companies even require that the tax deed holder undertake a quiet title action to eliminate the interests of all former owners and lienholders.
So, before you go out and find a steal of a deal at a tax foreclosure sale, do your research to ensure you know exactly what you may be getting yourself into.