Facing Foreclosure in Deschutes County, Oregon? Know Your Rights to Surplus Funds
Losing your home to foreclosure is one of the most stressful experiences a family can face. If you are a homeowner in Deschutes County, Oregon, and you are dealing with delinquent property taxes or the threat of foreclosure, it is important to understand your rights — especially when it comes to surplus funds.
Home to approximately 198,253 residents, Deschutes County is a mid-sized community, centered around Bend. Like homeowners across Oregon, residents here may not realize that money could be owed to them after a foreclosure sale.
How Foreclosure Works in Deschutes County
In Oregon, the property tax foreclosure process works differently than in most states. Rather than selling your property at a public auction, the county takes title to the property directly through a tax deed process. Oregon does not produce tax sale overages because the county takes title to the property directly rather than selling it at auction. However, if your property was lost to a mortgage foreclosure, surplus funds may exist through the court system.
This means that for property tax foreclosures specifically, the traditional "surplus funds" that arise when a property sells for more than the taxes owed do not exist in Oregon. However, there is still important information you need to know.
Mortgage Foreclosure Surplus in Deschutes County
If your Deschutes County property was lost to a mortgage foreclosure (not a tax foreclosure), surplus funds may exist. Under ORS 18.950 (mortgage foreclosures), when a property is sold at a sheriff's execution sale for more than the outstanding debt, the excess belongs to you.
These funds are held by the Circuit Court (for mortgage foreclosures) and can be claimed by the former property owner or parties with priority liens (mortgage foreclosure only).
Key Deadlines
Oregon does NOT generate surplus funds from tax foreclosure sales. However, mortgage foreclosure surplus may exist. In Oregon, two years before funds are presumed abandoned. Do not wait — the longer you delay, the harder recovery becomes.
Tyler v. Hennepin County: Your Rights Are Stronger Than Ever
In 2023, the U.S. Supreme Court unanimously ruled in Tyler v. Hennepin County that governments cannot keep surplus proceeds from property sales beyond what is owed. This landmark decision strengthened property owner rights nationwide, and Following Tyler v. Hennepin County, Oregon property owners have strengthened protections.
Steps to Take Now
- Contact the County Tax Collector in Bend to ask whether any surplus or excess funds exist from the sale of your property.
- Gather your documents: proof of ownership, identification, and any foreclosure correspondence.
- Understand the timeline: Know the deadlines that apply to your situation and act before they expire.
- Reach out for free help: AuctionBlock.org is a mission-driven company that helps former homeowners navigate surplus fund recovery for a flat $4,999 fee upon successful recovery.
Free Help from AuctionBlock.org
At AuctionBlock.org, we understand how confusing and overwhelming foreclosure can be. We are here to help you determine whether surplus funds may be owed to you — and to guide you through the recovery process, for a flat $4,999 fee upon successful recovery. Oregon's system is unique, and we can help you understand exactly where you stand.
Visit AuctionBlock.org to get started — our help is always free.
AuctionBlock.org is a mission-driven company. This article is for educational purposes only and does not constitute legal advice. Laws change frequently — consult a licensed attorney in Oregon for guidance specific to your situation. Last updated: April 2026.