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Behind on property taxes in Multnomah County
Unpaid property taxes in Oregon become a lien and can lead to county tax foreclosure. In Multnomah County, a property becomes subject to foreclosure once a tax amount is three full years delinquent, with interest accruing at 1.3333% per month. Unpaid taxes do not prevent a sale. They are paid from the proceeds at closing.
First, the good news: unpaid taxes do not stop you from selling. They get paid at closing out of the proceeds. Title finds them, the settlement statement handles them, and you never write a check.
Second, you probably have more time than you think. Here are the actual numbers.
The Multnomah County timeline
Per Multnomah County, a property becomes subject to foreclosure whenever a tax amount becomes three full years delinquent. Interest accrues at 1.3333% per month on the delinquent balance. That monthly rate works out to 16% annually, which is the part that hurts — it compounds the problem quietly while the foreclosure clock runs slowly.
| Stage | What happens |
|---|---|
| Payment due | November 15, or in three installments on November 15, February 15, and May 15 |
| Delinquent | Interest begins accruing at 1.3333% per month, roughly 16% per year |
| Years one and two | Balance and interest grow. The county sends repeated notices. |
| Three full years delinquent | The property becomes subject to foreclosure and goes on the county foreclosure list |
| After foreclosure judgment | Oregon provides a two-year redemption period to pay off the taxes plus interest |
So the full runway is long. Three years before foreclosure proceedings begin, plus a two-year redemption period after judgment. That is five years of clock, and most people calling us are somewhere in year two thinking they have weeks.
Delinquent property tax notice from Multnomah County.
This is not the same as mortgage foreclosure
Two different processes, two different clocks, two different parties.
| Mortgage foreclosure | Property tax foreclosure | |
|---|---|---|
| Who | Your lender or servicer | The county |
| Trigger | Missed mortgage payments | Three full years of delinquent taxes |
| Speed | Months. Notice of sale is 120 days minimum. | Years |
| Redemption after | None after a nonjudicial trustee sale | Two years after foreclosure judgment |
If you are behind on both, deal with the mortgage first. That clock moves five to ten times faster. See the Oregon foreclosure timeline.
Your options, in order
1. Call the county
Start here, before anything else. Multnomah County’s tax collection line is 503-988-3334. Payment plans exist, and counties would generally rather collect than foreclose. Ask three things: what you owe in total including interest, what payment plans are available, and exactly which year of delinquency you are in.
2. Check for a deferral program
Oregon has property tax deferral programs for seniors and people with disabilities that can postpone payment entirely. Eligibility depends on age, income, and other criteria. Worth asking about before you assume you have no options.
3. Refinance or borrow
If you have equity and income, a refinance can clear the taxes. Harder if the delinquency has already affected your credit, and harder still once a lien is recorded.
4. Sell
If the taxes are large relative to your equity and you cannot close the gap, selling preserves what equity is left rather than watching 16% annual interest eat it. On a $15,000 delinquent balance, interest alone is roughly $2,400 a year. Two more years of waiting costs you nearly five thousand dollars in interest on top of the original balance.
How it works at closing
Straightforward, and this genuinely surprises people in a good way. Title runs a search and finds the lien. It appears on the settlement statement. The title company pays the county directly out of the proceeds. You get what is left.
You do not need to clear the taxes before selling. You do need to tell us early, because it affects the timeline and it affects what you walk away with. The number we quote is before liens. The settlement statement shows exactly where every dollar goes.
If this came with an inherited house
Very common. A parent stopped paying in their last years and nobody knew until the estate opened, by which point two years of interest had accrued.
See selling an inherited house and how probate affects a sale. The house can also be sold in whatever condition it is in — see selling as-is. We buy across Portland and the metro. Here is how we get to a number.
Questions people ask
Can I sell a house with unpaid property taxes?
Yes. The lien is paid at closing out of the sale proceeds through the title company. You do not clear it first.
When does Multnomah County actually foreclose?
A property becomes subject to foreclosure once a tax amount is three full years delinquent. Before that, interest accrues at 1.3333% per month and the county sends repeated notices.
How much is the interest?
1.3333% per month on the delinquent balance, which is roughly 16% annually. On a $15,000 balance that is about $2,400 a year.
Is this the same as mortgage foreclosure?
No. Different process, different timeline, different party. Mortgage foreclosure moves far faster, so handle that first if you are behind on both.
Do unpaid taxes lower your offer?
They come out of the proceeds rather than out of the offer. The number we quote is before liens, and the settlement statement shows exactly where it goes.
General information about Oregon property taxes, not legal or tax advice. Contact Multnomah County tax collection at 503-988-3334 for your specific balance and options.
Sources: Multnomah County Property Tax Foreclosure and Delinquent Taxes & Liens pages. Redemption period via Nolo, pending statutory verification. Last verified: September 2026.