In past posts I’ve included both the Clackamas County and Multnomah County Foreclosure Process for delinquent property taxes.  This is the last county to be included.  All these counties are those covered by my blog.  Here is the Washington County Foreclosure Process:

First Three Years of Delinquency

Property taxes may be paid in three installments, on November 17, February 15 and May 15, 2009.  Any real property tax amount remaining unpaid on May 16th is delinquent.

For example, property taxes can be paid in full by November 17th or in three installments: November 17th, February 15th and May 15th. Any tax remaining unpaid as of May 16th are delinquent.

• May 15th of the following year taxes are one year delinquent;
• May 15th the next year taxes are two years delinquent;
• May 15th of the year after taxes are three years delinquent.

The property would be subject to foreclosure when the taxes are three years delinquent.

You will receive notices to tell you about the foreclosure process.

1. The tax statement you get each year shows delinquent taxes, and the current year’s tax. Also on the statement is the delinquent year which causes the property to be subject to foreclosure.
2. If the tax on your property is unpaid after May 15th of any year, you will get a delinquency notice telling you the date after which foreclosure proceedings will begin.

Note: If the 15th falls on a weekend, the County will receive payments the next business day.

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Notification Process

After the property becomes 3 years delinquent the foreclosure notification process begins.

1st Notice – 5/18	Delinquency notice
2nd Notice – 6/17	Courtesy notice with exact required payment dates to avoid publication.
3rd Notice – 7/16	Required notice 30 days prior to publication- all properties with 3 years delinquent tax are notified

July 15 is the last day to pay taxes with a personal check.

• Payments made after this date must be in the form of cash, money order, or cashier’s check. No personal or business checks will be accepted.
• This is the last day to pay to avoid publication of a delinquent tax in a paper of general circulation.
• You can avoid publication by paying the full years tax and interest.
• The last day to pay to avoid the 5% penalty is July 31st by 5 p.m. The payment must be received in the office, not postmarked.

Publication will occur in the month of August in the Hillsboro Argus. A 5% penalty will be assessed on the total amount published (all delinquent taxes plus interest). Publication includes the name of the property owner, account numbers, tax years of delinquency, amount of tax, and penalty.

A certified letter will be mailed shortly after the publication.

After the foreclosure list is given to the newspaper for publication, you can remove your property from the foreclosure list by paying the full tax and interest plus the 5% penalty. The only acceptable form of payment is cash, money order, or certified funds.

If you believe your property should not be part of the foreclosure process, you must file your answer with the court within 30 days of publication.

Judgment will be taken 30 days after the publication.

2 Year Redemption Period

Once Judgment is granted by the circuit court, the two year redemption period commences. To get your property back during this period, you must pay the judgment amount, which includes the published tax, interest, and 5 percent penalty, plus 9% interest. There is also a $50 lien holder fee that is assessed at this time. Partial payments are not accepted. Only the following persons can redeem the property:

1. a person with recorded legal interest in the property at the date of judgment and decree,
2. an heir or devisee of a person with a legal interest in the property,
3. a holder of a lien of record on the property, such as a mortgage company,
4. a municipal corporation with a lien on the property, such as a city or sewer district.

Not later than one year before the redemption period expires, all persons with a legally recorded interest in the property are notified by regular and certified mail that the period of redemption will end. The tax collector is responsible for providing this notice. Title companies provide litigation reports to identify the lien holders that are notified. Actual cost of the litigation will be charged to the property in lieu of the $50.00 lien holder fee.

The taxpayer keeps possession of the property up to the time the tax collector deeds the property to the county. If the property is damaged or destroyed in any way during the period of redemption, it may be immediately acquired by the tax collector.

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County Acquires Deed

At the end of the redemption period the tax collector deeds the property to the county and all taxes, interest, and penalties are canceled. Once the property has been deeded to the county, the taxpayer’s ownership, as well as, any vested interest holders rights are terminated. The property owner may petition the County Board of Commissioners to sell the property back to them at a private sale. It is at the discretion of the board to grant or deny the request.

The property becomes part of the county’s lands and can be sold at public auction to the highest bidder. Washington County rarely has homes that reach the point of the county acquiring the deed. The type of property normally acquired are nuisance strips or property that has some other condition which diminishes use and value.

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