ORS 312.520: Retention, sale or transfer by county of foreclosed property; primary residences; public auction of unsold property; forgiveness of outstanding taxes upon retention or transfer to nonprofit; deposit of sales proceeds.

(1)(a)(A) After the expiration of the statutory redemption period under ORS 312.120 or 312.122, the county may elect to retain the property for public purposes or transfer title to the property to a nonprofit organization for purposes of public benefit. (B) The county shall procure an appraisal from a licensed appraiser that is unaffiliated with the county for property described in this paragraph. (b) Property that the county does not retain or transfer under paragraph (a) of this subsection shall be sold in accordance with subsections (2) and (3) of this section. (2)(a) This subsection applies to property that is located in a residential zone and that was the former owner’s primary residence as of the date on which the taxes for which the property was foreclosed were assessed. (b) The county shall list such property for sale with a real estate broker or agent who does not hold an elected or appointed office and is not employed by any government entity. (c) The county shall procure an appraisal from a licensed appraiser that is unaffiliated with the county for property described in this subsection if the real market value of the property as shown on the most recent tax statement exceeds $250,000. (d) The list price shall be the highest price at which the property is reasonably expected to sell. (3)(a) The county shall conduct a public, high-bid auction for sale of property if: (A) After three attempts, the county is unable to enter into an agreement with a real estate broker or agent for the sale of the property in accordance with subsection (2)(b) of this section; (B) The real estate broker or agent described in subsection (2)(b) of this section is unable to sell the property within 12 months after listing the property; or (C) The property is not property described in subsection (1)(a)(A) or (2)(a) of this section. (b) The property shall be sold to the highest bidder at auction, provided the bid exceeds the outstanding taxes and other allowable costs chargeable against the property as determined under ORS 312.530 (4). (c) The auction shall include the following: (A) Advertisements in a multiple listing service for at least 30 days prior to the date of the auction. (B) If a private party is engaged to operate and advertise the auction, a limited fee to the private party in an amount equal to three percent of the surplus related to the property. (C) A minimum starting bid of two-thirds of the property’s fair market value as determined under paragraph (d) of this subsection. (d) For purposes of this section, the fair market value of the property shall be, as of the date on which the property was deeded to the county under ORS 312.200: (A) The real market value of the property for ad valorem property tax purposes as shown on the most recent tax statement; or (B) For property required to be appraised under subsection (1)(a)(B) or (2)(c) of this section, the appraised value if greater than the real market value. (e) The auction may include an online bidding process in which bids are received electronically over the Internet in real time. (4) For property that fails to sell at auction under subsection (3) of this section, the county shall conduct a public high-bid auction that meets the requirements of subsection (3)(c) of this section except that the minimum starting bid shall equal the outstanding taxes and other allowable costs chargeable against the property. (5) For property that fails to sell at auction under subsection (4) of this section, the county may forgive the amount of outstanding taxes and other allowable costs chargeable to the property and retain the property for public purposes or transfer title to the property to a nonprofit organization for purposes of public benefit. (6) An appraisal conducted for purposes of subsection (1)(a)(B) or (2)(c) of this section does not require a redetermination of the real market value, maximum assessed value or assessed value of the property for ad valorem property tax purposes. (7) As provided in ORS 279A.025, the Public Contracting Code does not apply to any agreement that a county enters into with a real estate broker or agent, auctioneer, appraiser or any other person for the purpose of disposing of property in accordance with this section. (8) Upon sale of real property foreclosed under this chapter, the county treasurer shall deposit the gross amount of the sales proceeds in a separate, interest-bearing account until the amount of the surplus has been determined. Interest earned on the proceeds in the account shall be included in the amount to be distributed. [2025 c.475 §6]