OR Offering Tax Deed Properties for Sale Through Realtors®

With Hennepin vs. Tyler settling what happens to tax deed auction overages, the State of Oregon is changing how some properties are sold to the public.

Previously, all properties went to a tax sale and were sold to the highest bidder.  Now that counties can no longer hold on to the overbid amounts (any amount over the opening auction price), the state is looking to help out those owners whose property was a homestead.  

Homestead properties that are foreclosed on for back due taxes will now be listed with a Realtor® and actively marketed through the Multiple Listing Service. The theory is the selling price in the MLS will be substantially more than the opening bid and opening up the process to the general public will generate more offers and create a greater surplus for the displaced homeowner. If the property fails to sell in 12 months, the property will go to auction at 70% of FMV, and if that fails a bidding process will commence at the minimum bid. Once the property sells the former owner or their heirs can file for the surplus for an indefinite period of time.

Non-homestead properties will continue to be sold to the highest bidder at auction.

I don't invest in OR, but I think the benefit to the investor is the opportunity to walk the property (legally) and be able to make a more informed pricing decision.  If this is successful I would expect more states to follow suit.

This is from an email I received from Linn County, OR: 

"Due to recent changes in Oregon statutes, Linn County is selling a tax-foreclosed property via a real estate agent. Please see the Willamette Valley Multiple Listing Service (WVMLS) for property details and the listing agent's contact information. MLS #844762 Link: WVMLS (https://wvmls.paragonrels.com/paragonls/publink/view.mvc/?GUID=03218e16-ee41-45aa-b6bf-e21d560cf165&Report=Yes) Details on the new parameters for selling tax-foreclosed property via real estate agents can be found on the Linn County Property Management Webpage. (https://www.linncountyor.gov/property/page/real-estate-agentbroker-sales) Properties are sold as is. Linn County does not guarantee title on any of these properties."

The price listed for the opening offer for the property referenced above looks to be well under what it might generate at auction, with a cursory look showing high land value and neighboring properties in the $400s.

Tax deed investors:  Is this a process you could get behind, or do you prefer a classic auction?