People who owned homes that Washington County, Oregon, foreclosed for unpaid property taxes, and the heirs of those owners, have until Nov. 30 to claim surplus equity from a $1.5 million settlement. The money covers foreclosures between Oct. 12, 2017, and Dec. 31, 2025.
The settlement, Brackett v. Washington County, is in the U.S. District Court for the District of Oregon. The county denies wrongdoing, and the court has not ruled on the merits. A payment goes only to people who file a valid claim.
Why tax-foreclosed owners are owed anything at all
Surplus equity is the gap between what a property is worth or sells for and what was owed in taxes, fees and costs. The settlement site defines it as the difference between the sale price, or real market value, and the unpaid taxes and related costs.
The idea comes from a 2023 U.S. Supreme Court case. In Tyler v. Hennepin County, a Minnesota county took the home of Geraldine Tyler, then 94, over about $15,000 in tax debt, sold it for $40,000 and kept the $25,000 difference. The Court held that keeping equity beyond the debt violates the Fifth Amendment, as a National Consumer Law Center summary explains.
After that decision, former owners sued Oregon counties in federal court, alleging the counties kept the surplus. Washington County is one of six counties in the litigation, along with Baker, Columbia, Jackson, Marion and Yamhill, which the court-authorized settlement hub lists with separate sites.
Who is in the Washington County class
The class includes people and companies that held an ownership interest in, or a valid lien on, Washington County property foreclosed for unpaid real property taxes during the window, and the heirs and successors of those holders. Government entities are excluded, according to the Open Class Actions summary, which also puts the county’s fund at $1,500,000.
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Heirs get no automatic payment. The administrator’s site says heirs to a class member must submit a completed claim to receive money. A family that inherited a parent’s house, or a sibling’s, and never heard what happened to it after the foreclosure is the kind of household the class describes.
A claim must show an ownership interest, a lien or heirship. The summary notes that the Washington County site hosts the claim form and the documents explaining what is needed, and it does not list specific proof for this county.
How much a claim could be worth
There is no flat payment. Each claim depends on the surplus on that property. For properties the county sold, the settlement covers 100% of the surplus proceeds on most eligible properties, plus interest, according to the summary. For properties the county kept or transferred, it covers 80% of the surplus equity on most eligible ones, plus interest.
The summary does not explain which properties fall outside “most” or how the 80% is worked out. When more than one person claims the same property, the claims are sorted out before anything is paid.
Class counsel will take fees from the fund. The summary says the Washington County notice caps those fees at 30%, and it does not name class counsel for this settlement. The federal judge overseeing the Oregon county settlements is Karin J. Immergut.
How and when to file
The claim deadline is Nov. 30, 2026. A claim can be filed online on the settlement site, where the instructions state the form must be submitted on or before that date, or by mailing a paper form postmarked by Nov. 30. Mail goes to Brackett v. Washington County, in care of Kroll Settlement Administration, P.O. Box 225391, New York, NY 10150-5391.
Filing is free. People who do not file a valid claim get no payment but are still bound by the settlement’s release. The window to opt out or object closed Sept. 14.
The court held its final approval hearing on Sept. 17, 2026. The administrator’s site says payments will be distributed after any appeals are resolved, asks claimants to be patient and has not announced a payment date. Questions can go to the administrator at (833) 930-1147, and answers to common questions are on the settlement FAQ.
Because payments follow court approval and any appeal, a claim filed in October or November can wait months. That is a reason to file early and keep the filing confirmation, not a reason to wait for a payment date.
When a claim may pay little or nothing
The class period is long, nearly eight years, from Oct. 12, 2017, through Dec. 31, 2025. A foreclosure in 2018 and one in 2024 both fall inside it, so a family that lost a house years ago and never learned what the county did with it afterward can still be part of the class.
The settlement pays by property, not by person, and by the surplus on that property. A house that sold for little more than the back taxes and costs leaves little surplus, and a claim on it would be worth little. A property that sold well above the debt is the one that can produce a larger share.
Did the family’s house go to Washington County for back taxes?
For an heir, the risk is a missed date or a claim built on the wrong papers. The Nov. 30 deadline is firm, and the notice, the court dates and the payment steps all carry different dates that are easy to confuse.
The Settlement & Refund Recovery System explains the four-date rule for reading a settlement notice and includes a step-by-step filing walkthrough. Its claim log and payment tracker give a family one place to record the filing date, the confirmation and any follow-up.
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
