Detailed Answer
When a property in Oregon sells at a foreclosure auction for more than the debt owed, the extra money is called “surplus funds.” A trustee must deposit these funds with the county clerk. Under Oregon law, other parties with valid liens or claims may request those surplus funds within six months of the sale.
ORS 86.795 requires trustees to deposit surplus funds with the county clerk within 30 days of sale. See ORS 86.795. ORS 86.800 provides a six-month claim window after the clerk mails notice to the former owner and publishes notice in a local newspaper. See ORS 86.800.
To determine whether other creditors or lienholders have valid claims to the surplus funds, you should:
- Perform a title search at the county recorder’s office. Check for recorded mortgages, deeds of trust, UCC-1 financing statements and judgment liens.
- Search UCC records online at the Oregon Secretary of State’s Business Registry (SOS UCC Search).
- Check with the county tax assessor for unpaid property taxes or special assessments that become liens.
- Review state and federal lien records, including IRS tax liens and child support liens, which attach to real property.
- Contact homeowners associations for assessments or lien filings if the property is subject to HOA rules.
Disclaimer: This article is for educational purposes only. It is not legal advice.
Helpful Hints
- Order an official title report early to identify all encumbrances.
- Consult the county clerk about notice requirements and deadlines.
- Set calendar reminders for the six-month claim period under ORS 86.800.
- If you identify a potential claim, consult a licensed Oregon attorney to review validity.
- Keep records of all searches, notices and correspondence with lienholders.