Clackamas County’s $21 million class action settlement centers on how Oregon property tax foreclosures can create “home equity windfalls” for the government. When property taxes go unpaid, counties may foreclose and either sell the property or keep it; historically, some jurisdictions have applied the sale proceeds to the tax debt and costs without returning any remaining value to the former owner. The settlement targets people who owned property in Clackamas County that was foreclosed and then sold or retained by the County for nonpayment of property taxes, offering payments that vary and, notably, do not require proof to submit a claim (with a deadline of 5/25/26). The lawsuit was filed on the theory that keeping the value of a home beyond what was owed in taxes, interest, and fees is an unlawful taking of private property without just compensation, raising constitutional and fairness concerns—especially for owners who may have lost substantial equity over relatively small tax debts. Its significance extends beyond one county: similar claims have surged nationwide after the U.S. Supreme Court’s 2023 decision in *Tyler v. Hennepin County*, which held that a government violates the Takings Clause when it retains excess equity from a tax-foreclosure sale. In the broader industry and regulatory context, tax foreclosure is governed by state property-tax statutes (in Oregon, counties have set procedures for notice, foreclosure, and disposition), but *Tyler* has pushed counties and states to re-examine whether their systems must expressly return surplus value, prompting additional lawsuits and policy changes aimed at aligning collection practices with constitutional limits and consumer-protection expectations