Hoping to get a deal
May 23, 2008
Hoping to get a deal
Article Launched: 05/19/2008 01:00:00 AM EDT
NORWALK – As the city’s July tax sale draws near, posters listing the properties for auction are drawing interest from visitors to City Hall.
They have been crowding around the photos since the posters were set up in the lobby last week, said Stephanie Bookhardt, who runs the City Hall newsstand and snack counter nearby. People are looking for a deal or to spot a property or an owner they knew.
“Unbelievable,” marveled one man.
“Depressing,” murmured another.
“Embarrassing,” a woman said.
Of the 200 properties slated for the sale, owners of all but 79 have paid in full, recouping $2.68 million in back taxes. Nearly $250,000 was collected last week alone, Tax Collector Lisa Biagiarelli said.
Her office wants to bring in about $4.3 million in outstanding taxes through the sale, which targeted properties owing $12,000 or more, or those that were at least three years late in back taxes. Sixty percent to 70 percent of owners named in a tax sale typically make good on their back taxes, leaving 20 to 30 properties that go to auction, Biagiarelli said.
In a tax sale, properties are auctioned at a minimum bid in the amount the city is owed, but auction winners do not automatically own the property and the city does not make a profit.
The landowner or lien holder has six months to redeem the property by paying the taxes due, plus 1.5 percent per month on the total sale price, which goes to the bidder along with the original auction investment.
Over-bids are held in an account and given back to the bidder if the property is redeemed. Otherwise, the auction winner receives the deed for the bid price and the over-bid is turned over to the state Superior Court, where the former property owner or lien holder can file for the money.From her perch close to the posters, Bookhardt is asked a lot of questions about the tax sale and properties. She directs people to read the packets explaining the sale, which the tax collector’s office sells for $15 each.
“I tell them, ‘You better read that book over there.’ You know there’s always a catch to it,” Bookhardt said. “You have to look into it and read the fine print, but some people get lucky.”
The tax collectors’ office has sold about 40 packets. Since bidders must put down a $5,000 deposit on each property they wish to bid on, it’s a good idea to do the research, said Cynthia Haith, the city’s delinquent tax collector.
Ed Manfreda, the owner of several properties, bought a packet after seeing the posters in the lobby and agreed that research is important.
“I learned that the hard way. The first place I bought I should have looked into it a little better, because it was not what I thought,” he said.
Gary Pfister stopped to check out the posters, became intrigued, then called his sister to tell her about the properties.
“I’ve heard of foreclosures before, but not tax sales,” Pfister said. “You could probably get plenty of good deals if you do the research.”
You can also get a bad deal if you don’t, Haith said. She has seen bidders’ joy over winning a property turn to panic.
In the last tax sale in 2005, one woman – now known around the tax collectors’ office as the “Price is Right lady” – jumped up and down and ran screaming down the aisle of the Concert Hall when she won a small strip of property she mistakenly thought included a home.
Instead of searching the specifications, the woman just drove by the address. When she realized her mistake the next day, she wanted her deposit back, but it was too late.
“If she would have gotten a map, she would have figured out it was a small piece of property. You couldn’t even build a doghouse on it,” Haith said. “She did her research a day too late.”
Haith has seen bidders get good deals. In a strategic move, a woman nabbed the property next door to her home in the 2003 tax sale, she said.
City employees on their lunch breaks also peruse the properties.
City Clerk Mary Roman said 21 Point Road, where the owner owes more than $29,000 in back taxes, is her “dream house.” The three-bathroom Mediterranean-style home is assessed at $2.65 million, and Roman joked about pooling friends to buy it.
It’s not only owners of private homes who owe back taxes and sewer assessments. Others on the list include a car wash, a former school, a synagogue, a church, a boat locker at the private Rowayton Yacht Club on Bluff Avenue and the city transfer station owned by the quasi-public Connecticut Resources Recovery Authority.
The properties often come with a past – and sometimes a lawsuit, real estate attorney Michael Witherspoon said. He did title searches for the city so Biagiarelli’s office can notify lien holders about the sale.
“If you plan on buying at the tax sale in July, plan on having a title search done,” Witherspoon said. “You could be buying a lawsuit, they could owe the IRS, this bank or that guy.”
Prospective buyers may look up information in the tax assessor’s office, pay for private title searches or conduct one themselves in the town clerk’s office.
Whether bidders nab a good deal or bid on a dud, the sale is interesting, Haith said. People who don’t bid attend to watch the drama unfold.
“Even if you’re not going to bid, it’s very interesting to attend,” Haith said.
Jacksonville Delinquent tax number rises sharply
May 23, 2008
The numbers, taken at purely face value, are astounding.
In 2006, between the county and individuals, there were 16,872 delinquent property taxpayers from the 2005 tax year. The value of those taxes was just over $24 million.
Last year, those figures jumped to 19,003 delinquencies worth $34.25 million.
This year, there are 29,885 delinquencies worth $63.9 million, nearly double the previous year.
According to Alvin Crooms, manager of property taxes for the Tax Collector’s Office, both of those figures are easily records. And, next Friday it’ll be Crooms’ job to get rid of most of them through his office’s on-line sale of the tax certificates that represent a lien on the properties. Those certificates bear interest at a maximum rate of 18 percent a year.
In years past, even with thousands fewer certificates to sell in a public auction, Crooms and his staff would spend several days selling a majority of the certificates. While the City recouped the unpaid taxes through the sales, the process was cumbersome, lengthy and at times confusing.
“Alvin would put a property up for bid and 40 hands would shoot up in the air at the same time,” said Tax Collector Mike Hogan.
That antiquated system was replaced two years ago by an on-line auction that requires preregistration, validation of funds and a whole lot less time. Crooms said the decision has proven valuable.
“It has gone really well. It used to take five or six days when we did it manually,” said Crooms. “Now, we can do it in one day.”
Both Crooms and Hogan said a majority of the available tax certificates do get sold, meaning the City isn’t really losing any property tax money. Only a handful become what’s known as “struck” to the City, which means the City takes ownership of the property.
The auction starts May 30 at 9 a.m. and ends at 5 p.m. Over the course of those eight hours, Hogan expects most of the nearly 30,000 properties to be sold — sort of. See, buyers aren’t exactly getting a home or an empty lot. Purchase of the tax certificate instead entitles the purchaser to full payment of the delinquent taxes plus interest. Often, that interest is no more than one-quarter of a percent, but is usually closer to 5 percent.
“I know most of them are looking for a quick 5 percent (on their investment),” said Hogan, adding the sale is buyer-beware and his office encourages everyone to at least look at the properties. “Some of them buy them sight un-seen. We tell them to look up the record, go look at the property and if they like it and want to buy it, fine.
“A lot of the properties have liens on them, are in a bad area of town or have an abandoned structure on them which is going to be demolished by the City. Sometimes their value is less than the taxes.”
Hogan said Florida’s liberal property tax laws almost make it attractive for people to forego paying their property taxes until the very last second. It works like this: the tax bills go out by Oct. 1 every year, they aren’t delinquent until April 1 and the tax sale isn’t until late May or early June.
“The tax certificate is sold and the holder has to hold onto it for two years before they can force a tax deed sale,” explained Hogan, adding the property owner can purchase the certificate any time during this period, usually for just the taxes due plus very little interest. “Then, the Clerk of the Court has 90 days to do the paperwork. That’s almost three years to pay.”
Hogan agreed with Crooms that the on-line sale works really well.
Jacksonville Tax sale guidelines and procedures
May 23, 2008
The annual tax certificate sale is a public sale of tax liens on delinquent real property taxes. All procedures of this tax sale are in accordance with Florida Statutes. The site of this year’s tax sale is: http://duval.taxsale.com.
To participate in this sale you must register at this Web site. In order to purchase certificates, you must also place a deposit pursuant to the procedures defined. Please remember, you are not bidding in order to purchase the property. A tax certificate is only a lien on the property. It does not convey title to the land. Tax Certificates sold through this tax sale must be held two years before a tax deed application can be submitted. Bidding is based upon the amount of annual interest to be earned by the certificate buyer.
A tax certificate may be canceled if it is learned after the sale that a pre-existing stay order from the Bankruptcy Court was in effect on June 1. In that case, amount paid for the certificate will be refunded. In the event of a bankruptcy proceeding initiated after the sale of the lien, there are no guarantees – the United States Bankruptcy Court judge will determine the amount, if any, the certificate holder will receive.
Although this is an excellent investment and problems are rare, the best attitude for any investor is always “buyer beware.” All certificates will be sold online on June 1. Certificates will be awarded to the bidder willing to accept the lowest rate of interest on the investment. If there are multiple bids for the same lowest rate, the winner will be selected through a random, computer-generated process. Place your bids very carefully. It will be the bidders’ responsibility to ensure the parcels on which they have bids are the ones wanted. Once a certificate has been awarded, it will not be canceled due to an error, or change of mind, by the bidder. The bidder will be required to pay for all the certificates they have won.
Full payment for the tax certificates awarded, less the amount held on deposit, must be made within 48 hours of the auction close. Payment must be made by wire transfer in the same manner that you made your deposit. Pursuant to Florida law if a bidder fails to pay the amount due all bids for that bidder will be canceled and the bidder’s deposit will be forfeited.
Procedures
Bidder registration
The Duval County Tax Collector’s Office is required by the Internal Revenue Service to obtain the tax identification number and a completed W-9 form at the time each buyer registers as a bidder. For individuals, the tax identification number (TIN) is the Social Security Number (SSN). The individual registering must be the actual “owner” of the SSN. (It cannot be a child’s name with the parents SSN). For most “non-individuals” (i.e., trust, estates, partnerships, and similar entities), the tax identification number (TIN) is the Employer Identification Number (EIN) for the organization.
Please make sure the TIN you use on the Bidder Information form matches the name shown on your social security card or Employer Identification form. Annually we send 1099s – Interest Income Tax Statements to the registered bidder and the Internal Revenue Service. The information is reported for the name and TIN used at registration.
Deposits
Bidders must place funds on deposit in order to participate in the tax sale. A deposit in the amount of 10 percent of the total value of certificates you wish to purchase must be received by the dates stated on the tax sale Web site. For example, if you wish to purchase $150,000 worth of tax certificates, you must place $15,000 on deposit. You will be able to place your deposit by wiring the money from your financial institution. You will need to plan early and have your deposit posted according to the instructions on the sale site. If you do not have the funds on deposit you will not be awarded any tax certificates, even though you may have bid on them. If you place $10,000 on deposit you may be awarded up to $100,000 worth of certificates. If you win $100,000 in certificates any bids you placed on other certificates will not be considered. To ensure sufficient time to process them, the deadline for placing deposits will be several days prior to June 1. Check the procedures on this web site for instructions to place a deposit.
Tax certificate sale online and proxy bidding
Bidders will be able to register online and then bid from any computer that has access to the Internet. Simply go to http://duval.taxsale.com, log in and you’re ready to go. We will also have computers available in the library as well as our main office that we can make available to bidders. Simply call 630-1916, press option four, and make an appointment or send a request to the following e-mail address: taxjax@coj.net
The online tax certificate sale uses the concept of proxy bidding. Proxy bidding may be a new term to many of you but in fact it has been around for quite some time. The popular auction Web site, eBay, has used proxy bidding to determine the winner of their auctions.
How does proxy-bidding work? In a live auction, a bidder will lower his bid by quarter percent increments until he is the only bidder left or until the interest goes below his acceptable minimum level, at which point he would drop out. Proxy bidding is a form of competitive sale in which bidders enter the minimum interest rate that they are willing to accept for each certificate. The auction system acts as an electronic agent, submitting bids on behalf of each bidder. The result of the proxy system is that the electronic agent keeps lowering the bid to submit by quarter percent increments until you are either the only bidder left, (in which case you get the certificate at a quarter percent lower than the previous bid) or until you reach the floor you have set.
However, please note that zero percent bids are not treated as proxy bids; they are awarded at zero. If you are the only bidder on a given certificate and your minimum rate is greater than zero percent, the electronic agent will submit a bid of 18 percent on your behalf. In the case of a tie at the winning bid rate, the system awards to one of the tie bidders through a random selection process using a random number generator. In no case will a bidder be awarded a certificate at a rate lower than his specified minimum acceptable rate. Certificates that receive no bids will be awarded to the county at 18 percent. In addition, certificates valued at less than $100 with homestead exemption are awarded to the county and are not available to individual certificate holders.
Amount of purchase
The amounts printed in the newspaper and listed on this web site represent the certificate amount, which includes the unpaid taxes, assessments, and related costs and charges in accordance with Chapter 197, Florida Statutes.
Payment for certificates
The total purchase amount less the deposit must be paid within 48 hours of the close of the auction. The exact date and time will be posted on the sale site. Upon full payment of the purchased tax certificates, the certificate holder will be issued a receipt that indicates the tax certificate number, the amount of each certificate purchased, the property identification number and percentage bid.
All sales are final
Pursuant to Chapter 197.432(6), Florida Statutes, if a person to whom a tax certificate(s) have been sold fails to pay the amount due the tax collector will cancel all bids and the bidder’s deposit will be forfeited.
Certificate holders cannot contact property owners
The holder of a tax certificate may not directly, through an agent, or otherwise initiate contact with the owner of property upon which he or she holds a tax certificate to encourage or demand payment until two years have elapsed since April 1 of the year of issuance of the tax certificate.
Any holder of a tax certificate who, prior to the date two years after April 1 of the year of issuance of the tax certificate, initiates, or whose agent initiates, contact with the property owner upon which he or she holds a certificate encouraging or demanding payment may be barred by the tax collector from bidding at a tax certificate sale. Unfair or deceptive contact by the holder of a tax certificate to a property owner to obtain payment is an unfair and deceptive trade practice, as referenced in s. 501.204 (1), regardless of whether the tax certificate is redeemed. Such unfair or deceptive contact is actionable under ss.501.2075-501.211. If the property owner later redeems the certificate in reliance on the deceptive or unfair practice, the unfair or deceptive contact is actionable under applicable laws prohibiting fraud.
Tax deed process
For an investor to obtain a Tax Deed to the property the investor must hold the tax lien certificate for a minimum of two ears from April 1 the year the certificate was first issued. The selling of a tax deed by the Duval County Clerk of Circuit Court will result in issuance of a tax deed from a property owner to a tax deed applicant or the highest bidder for the deed.
As an example, a 2005 tax certificate purchased at the tax certificate sale on June 1, 2006, would have to be held until April 1, 2008, before the certificate holder could apply to bring the property to a tax deed sale.
Please note: A Tax Deed is not the same as a warranty deed. It is the certificate holder’s responsibility to ensure the legal status of the property. Likewise if it is determined that the process of “quieting title” would need to be done, it is the certificate holder’s responsibility to complete it and pay any associated fees.
Redemption of a tax certificate
Chapter 197.472(1), Florida Statutes states the following:
“Any person may redeem a tax certificate or purchase a county-held certificate at any time after the certificate is issued and before a tax deed is issued or the property is placed on the list of lands available for sale. The person redeeming or purchasing a tax certificate shall pay to the tax collector in the county where the land is situated the face amount of the certificate or the part thereof that the part or interest purchased or redeemed bears to the whole. Upon purchase or redemption being made, the person shall pay all taxes, interest, costs, charges, and omitted taxes, if any, as provided by law upon the part or parts of the certificate so purchased or redeemed.”
Should the tax certificate be redeemed any time prior to the issuance of a tax deed, the investor will receive a refund for the purchase amount, plus the rate of interest bid at the time of the sale.
Expiration of tax liens
Chapter 197.482(1), Florida Statues states the following: “After the expiration of seven years from the date of issuance, which is the date of the first day of the tax certificate sale as advertised under s. 197.432, of a tax certificate, if a tax deed has not been applied for on the property covered by the certificate, and no other administrative or legal proceeding has existed of record, the tax certificate is null and void, and the tax collector shall cancel the tax certificate, noting the date of the cancellation of the tax certificate upon all appropriate records in his or her office.”
County Tax Lien Sales Scrutinized
May 23, 2008
The potential sale of tax liens as a method of closing the gap in a projected 2009 budget shortfall for Suffolk County has taken on an added dimension in recent weeks, with the surfacing of a proposal for a limited development corporation that would buy future tax liens.
Harry Tyson, of Municipal Asset Providers in Manhasset, has proposed not only the purchase of current outstanding tax liens, but future liens as well. “Suffolk County currently has about $50 million in delinquent taxes each year,” he said. “My company has developed a program to purchase the outstanding liens, and then new liens, each year in the future. This product would allow the county to sell its delinquent liens for an amount that equals 95% of the present value of liens.”
It is a proposal, says County Executive Steve Levy, that is being examined to see how it would affect the county. “There’s good and bad to it,” he said. “There’s the upfront cash, but if you’re going to sell future liens you wouldn’t get penalties and interests that would come to the county. And you can lose control over these properties. Right now it’s on the table.”
The proposal, said Robert Lipp, deputy director of the county Legislature’s Budget Review Office, is “a new kind of animal” since the county currently sells tax liens to itself, which it then collects as properties are disposed of through transfer.
“Right now, each year we have a sale of tax liens – if a person is delinquent in their taxes, we sell the tax liens to ourselves,” explained Lipp. “That way if the property is ever sold, a portion of the proceeds goes to the holder of the lien, including how much taxes are owed, plus penalties.”
The traditional tax lien sale company might purchase current tax liens, he said, but this proposal is for future tax liens, and is different. “Here we have a vendor who wants a long-term contract with the county so that he could borrow at favorable rates for long periods of time so that he could give the county as much as possible, up front, for each year’s tax lien sale,” explained Lipp.
Suffolk County is weighing two options for raising funds to close a budget shortfall in 2009 estimated at $150 million – the sale of tax liens or tobacco securitization funds. How much could be raised through the sale of tax liens is something that has yet to be assessed, said Lipp. “In terms of the finances, once a [request for proposals] is put together and the offers come back, we’d look at them and analyze how much would we get back,” he said.
According to Tyson, there are a number of tax lien purchasers in the market, and other municipalities sell their liens to LDCs. His product, however, allows the municipality to continue to collect its own liens and pays out a premium, so the county would retain control over aspects of the property disposal. “The program would either be 30 years or whenever the county wants to terminate the program, which they can do every single year,” he said.
Levy said that while the Tyson proposal may have merit, tax liens and tobacco securitization funds should be looked at side by side.
“Some people think selling tax liens is head over heels better than tobacco, but both approaches have pros and cons,” said Levy. “The good thing about tobacco is it’s not speculative, but on the downside you’re giving up revenues in the future. As for selling tax liens, we don’t know how the bonding agencies would look at doing that. Nobody knows exactly how it would work. So we don’t know which one we would do. We want to see RFPs for both tax lien sales and tobacco securitization.”
Another concern, said Deputy County Attorney Dennis Brown, is whether county law regarding handling of tax lien properties would be met by any proposal. “With respect to binding county laws, we would have to look at the degree that they would be binding on a purchasing entity,” he said.
Lipp agreed. “There are nuances to the Suffolk County Tax Act which have to be met,” he said. “And from what we gather the county executive and Legislature don’t want to do something that’s going to throw someone out of their house. That has to be formally addressed, to make sure those sorts of things wouldn’t happen before we even look at whether the finances make sense.”
Mayor Pays Tax Lien
May 23, 2008
Mayor Frank Guinta yesterday paid more than $3,000 in past due 2007 real estate taxes and nearly $300 in an outstanding 2006 wastewater bill on property he owns on Youville Street.The mayor said he was unaware of a real estate tax lien and a wastewater lien filed against his three-family residential investment property by the city tax collector’s office until informed by the New Hampshire Union Leader.
An hour later, he told the newspaper, “Thank you for bringing this to my attention. It’s been paid.”
Liens on file against Guinta at the Hillsborough County Registry of Deeds and on the registry’s Web site were verified by city tax collector Joan Porter.
They came to the Union Leader’s attention as the mayor was in Concord speaking on behalf of the conservative New Hampshire Advantage Coalition for a state and local spending cap pledge for officeholders and candidates. Guinta said at the news conference that state officials are “fleecing” taxpayers.
A wastewater lien listed in the Hillsborough County Registry of Deeds for $129.94 for Manchester Mayor Frank Guinta’s primary home at 221 Crestview Road was filed Aug. 31, 2007 and was paid in October 2007.
Guinta saw no irony there, saying, “I don’t see a connection between the two. I believe in spending caps. This is a completely different issue.”
The city tax collector’s office on April 25 filed a real estate tax lien against Guinta’s property at 172 Youville St., according to a Report of Collector’s Execution of Real Estate Tax Lien, executed at the tax collector’s office.
The lien was for $2,798.54 in taxes, $122.83 in interest and $36.50 in costs, for a total owed of $2,957.87.
Tax collector Porter said that when Guinta paid them yesterday, the total due was $3,021.60. The bill was for the balance of Guinta’s 2007 tax bill, which was payable on Dec. 9.
According to the tax collector’s office, the city’s tax year runs from April 1 to March 31 and liens are placed in April. Property owners are notified of impending liens in certified letters a month in advance, in March.
Guinta did not recall receiving the letter, although he did not dispute that he received one.
“I wasn’t aware that the bills were owed, and I verified it and paid them, and appreciate it being brought to my attention,” he said.
Wastewater bills are due quarterly, and Guinta had two wastewater liens filed against him on Aug. 31, 2007, for 2006 bills, according to a similar tax collector’s office report on file with the county deed registry.
A wastewater lien for 172 Youville St. was for $236.97, including interest and costs on a 2006 bill. When Guinta paid it yesterday, the bill was $295.01.
Another wastewater lien listed in the registry for a total of $129.94, for Guinta’s primary home at 221 Crestview Road, was also filed on Aug. 31, 2007. But that bill was paid in October 2007, according to Porter and a redemption notice filed in the registry.
City backs tax lien sales
May 23, 2008
City backs tax sales
Use of liens to sell houses defended
By Lynn Anderson
Sun reporter
May 22, 2008
Baltimore is defending its practice of selling houses that have tax liens for unpaid water bills and other municipal fees, denying accusations by a major national bank that the city is responsible for a recent increase in mortgage foreclosures.
The city defended the city’s tax-sale practices in federal court filings this week as part of a groundbreaking lawsuit filed by Baltimore against Wells Fargo Bank.
The city alleges in U.S. District Court that the bank exploited African-American families in Baltimore by offering them higher-interest loans than they offered white buyers, stripping them of equity through refinancings and charging them excessive points and fees.
In March, the bank sought to dismiss Baltimore’s lawsuit by alleging that the city, through its tax lien program, takes “foreclosure actions” against many more homeowners than the bank does – about 19,000 from 2000 to last year.
In a memorandum filed in U.S. District Court in Baltimore late Tuesday, attorneys for the city argue that Wells Fargo’s dismissal motion should be denied and that the bank’s conclusion that City Hall is responsible for Baltimore’s urban ills is “palpably false.”
“Defendants would have the court believe that Baltimore has intentionally ‘unleashed’ on its residents a program of tax lien sales that causes thousands of foreclosures for nothing more than a small unpaid water bill and the like,” city attorneys said in opposing the bank’s request. “Maryland law mandates that Baltimore conduct these sales.”
City Solicitor George A. Nilson said the city’s annual tax lien sale is in no way “voluntary” and explained that the bank’s 19,000 figure includes all people who entered the “tax lien process,” not those who actually lost their homes because of unpaid bills.
He called Wells Fargo’s argument “irrelevant” and said the bank’s attorneys are playing a blame game that will get them nowhere in court.
“The whole issue of our tax sale process has nothing to do with this lawsuit,” Nilson said. “It’s always easier to point the finger at the party that has accused you of doing something wrong, but that is not a legal defense.”
A spokesman for the bank said the city is trying to make it a “scapegoat for broad social problems that have plagued Baltimore for decades.”
“We have stated all along that we believe this lawsuit has no merit, that we will vigorously defend it and that we believe we will prevail,” said Kevin M. Waetke, a spokesman for the bank.
City officials said they are emboldened by recent discussions they have had with other cities considering similar legal action to recoup revenue lost in a flood of foreclosures.
“The argument that Wells Fargo is putting forward is a smokescreen,” said Sterling Clifford, a spokesman for Mayor Sheila Dixon. “Wells Fargo is being sued because they engaged in illegal lending practices.”
Since 2000, more than 33,000 Baltimore homes have been subjected to foreclosure filings.
Wells Fargo, one of the two largest mortgage lenders in the city since 2004, made 1,285 loans a year totaling more than $600 million from 2004 to 2006, according to the city’s initial lawsuit. City officials say that most of the company’s loans resulted in foreclosures, many of them in black neighborhoods.
In the bank’s March filing, lawyers argue that the financial institution is being unfairly maligned. It says the city’s complaint “alleges – in conclusory and illogical fashion – that it was at least 313 foreclosures over seven years by Wells Fargo that caused the city ‘tens of millions of dollars’ in damages.”
Relying heavily on articles, editorials, graphics and video footage from The Sun about tax lien sales, ground rent and other housing issues in Baltimore, attorneys argue that it is the city that is to blame for recent foreclosures.
The motion says that the city’s allegations “fail to discuss its own tax lien sales, which have resulted in 19,000 foreclosure actions being filed against city homeowners … particularly harming homeowners in minority neighborhoods that are among the city’s poorest.”
Wells Fargo lawyers argue that more than half of the 2006 tax lien sales in Baltimore “involved properties in census tracts that are more than 80 percent African American.” They say that “the city’s tax lien sales … have disproportionately injured minority homeowners in the city’s poorest neighborhoods.”
City officials said bank representatives were mischaracterizing their actions.
“This is a tactic to smear the city,” said Bradley H. Blower, an attorney with Relman & Dane, a Washington law firm that contracted with the city to help with the Wells Fargo lawsuit.
Blower called the city’s tax lien process “fair” and explained that homes are only sold at auction after owners are given time to settle their debts.
Nilson, the city solicitor, said that the city gives homeowners as much as two years to pay off debts, much longer than any bank. As a result, most citizens keep their homes.
Blower also said that many of the foreclosures counted as part of the bank’s 19,000 figure are properties that are part of Baltimore’s Project 5000, a revitalization program that was initiated several years ago to rebuild sections of the city.
Those houses are mostly vacant and have been abandoned for years, he said. And, unlike houses that are foreclosed on by the bank, no one is living in houses taken as part of Project 5000.
“The bank is foreclosing on houses that have real people in them, people who were suckered into bad loans that Wells Fargo sold them,” Nilson said.
Miami 2008 Tax Certificate Sale Information
May 23, 2008
Miami-Dade County
Tax Collector
Website and content provided by Miami-Dade County
2008 Tax Certificate Sale Information
Florida Statutes require the Tax Collector to conduct a sale of tax certificates on parcels on which taxes are delinquent for the preceding year on or before June 1 each year.
Delinquent real estate taxes are advertised in a local publication of general circulation once a week for three consecutive (3) weeks before the tax certificate sale. Parcels with unpaid taxes as of April 1, 2008 will be advertised May 1, 8 and 15, 2008 in the Miami Daily Business Review. The list will be available on this web site, the Miami-Daily Business Review web site at: www.dailybusinessreview.com, as well as our auction web site www.BidMiamiDade.com.
Below is a list of electronic files that constitute the same list that is published in the local newspaper. All files require that you have Adobe Acrobat Reader installed on your computer. A free download of Adobe Acrobat Reader is available from the software publisher.
Access times for these files will vary depending on your internet connection (cable, ISDN, DSL, or 56KB modem), time of day (amount of internet traffic), internet service provider, and other factors. To test your system, you may want to work with the smallest file first – to get an idea of the processing time – before working with the larger files.
When you click on the link, your system should start Adobe Acrobat Reader and open the file. You should be able to scroll through the file and, if you wish, print. You may also save the file to your system, but remember that the process will require space on your system drive and may take a while.
| 2008 Advertised Certificates | |||
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761 KB |
10,000 |
000068565- |
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For each delinquent tax parcel, the newspaper advertisement contains the sequential advertising number, the 13-digit folio number, delinquent tax amount and the property owner’s name. To research the folio number, use the following formula:
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Folio Number |
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30 |
4912 |
001 |
2531 |
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Municipality |
Township/ |
Acreage/ |
Parcel No. |
| 30: | The first two (2) numbers designate the municipality in which the subject property is located. |
| 4912: | The next four (4) numbers are the Township, Range and Section. This number is formulated by taking the last number of the township (4), the last number of the range (9) and the full section number (12). |
| 001: | The next three (3) digits designate either acreage (unsubdivided) or the number of a subdivision within the section (subdivision acreage). |
| 2531: | The last four (4) digits of a folio number are the parcel number within the section. |
The certificate’s face amount consists of the sum of the following: unpaid real estate taxes, charge for delinquency (3% on the unpaid tax amount for April and May), Tax Collector’s commission (5% of the unpaid tax amount), June interest (1.5%), advertising and cost of sale-related charges.
Tax certificates represent a first lien on real estate and bear interest at a maximum rate allowed by law of 18% unless the bidder demands a lower rate. All purchases go to the bidder who will accept the lowest interest rate. Upon redemption, the taxpayer pays the face amount of the certificate together with any accrued interest. However, when a tax certificate is redeemed and the interest earned on the tax certificate is less than 5% of the face amount of the certificate, then a mandatory charge of 5% is collected when redeeming the certificate.
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In Florida, real estate taxes become a first lien on January 1 although they are due payable beginning November 1 of that year. If these real estate taxes are not paid on or before March 31 of the following year, they become delinquent April 1. |
If there are no bidders for the tax certificate, the certificate is struck off (issued) to Miami-Dade County and is retained in possession of the Tax Collector. Also, a tax certificate representing less than $100.00 in delinquent taxes on property that has been granted homestead exemption shall be struck off to Miami-Dade County. Any tax certificate stuck off to the county shall accrue interest at the maximum rate allowed by law (18%).
County certificates, other than those relating to homestead real estate under $100.00, can be purchased directly from Tax Collector. The certificates on homestead real estate under $100.00 can be purchased from the county when the certificates and the accrued interest represent an amount of $100.00 or more. For each certificate purchased and each omitted year, the Tax Collector shall receive a fee of $6.25. Payment must be made at the time of purchase for costs incurred.
Individual certificates issued are transferable by endorsement at any time before they are redeemed or a tax deed is executed. A tax certificate transfer form may be obtained from the Tax Collector’s office. The assignment must be returned and recorded with the Tax Collector’s office. There is a fee of $2.25 for each transfer.
If necessary, prior to closing the 2008 Tax Certificate Sale, all County held certificates available after the 2008 Tax Certificate Sale batches close will be offered for purchase either in-person directly from the Tax Collector or in one supplemental batch through the Tax Collector’s auction website at www.BidMiamiDade.com. Sale items will include those items advertised for the 2008 sale that were removed as paid and then subsequently had the payment canceled. If sold online, the list of available certificates will be posted one week prior to the sale on the auction website. All certificates will be offered in one batch at an interest rate of 18%; if more than one purchaser wishes to buy a particular county-held certificate, the auction software will randomly assign the certificate when the batch closes at 10:00 a.m. EDT. Payment for certificates shall be via ACH (Automated Clearinghouse) and payment in full shall be due by 5:00 p.m. EDT the day of the sale. If sold in-person directly from the Tax Collector those items will be available on a first-come, first-served basis starting on July 1, 2008 with payment due upon purchase.
Any tax certificate can be cancelled if errors, omissions or double assessments are made. An error in assessment results in a change in the face amount of the certificate. In the event an error is discovered, the tax certificate may be cancelled or corrected by the authority of the Department of Revenue. In this case, the corrected portion or the cancellation shall earn interest at the rate of 8% per year, simple interest, or the rate of interest bid at the certificate sale, whichever is less. The interest is calculated from the date the certificate was purchased until the date the refund is ordered.
If, after purchase, a tax certificate becomes involved in a bankruptcy, it is the certificate holder’s responsibility to seek legal counsel to protect their investment. During bankruptcy proceedings the court may order the collection stayed until such time as the court enters a final order. While the bankruptcy court generally upholds the validity of the tax certificate, in many cases the court may allow partial payments over time and may reduce the interest rate payable to the certificate holder.
| The issuance of a tax certificate on a parcel does not entitle the buyer to the property. The holder of a tax certificate may not directly, through an agent, or otherwise initiate contact with the owner of property upon which he or she holds a tax certificate to encourage or demand payment until two years have elapsed since April 1 of the year of issuance of the tax certificate. The redemption of a tax certificate can only take place at the Tax Collector’s Office. |
At any time after two years have elapsed since April 1 of the year of issuance of the certificate and before the expiration of the seven years from the date of issue, the individual certificate holder may submit a tax deed application to the Tax Collector. Any certificate holder making application for a tax deed, shall pay the Tax Collector an application fee, a title search fee and all amounts required for redemption or purchase of all other outstanding tax certificates, interest, omitted taxes, and delinquent taxes relating to the real estate. A parcel assessed as homestead property on the current tax roll will have the amount equal to one-half of the current assessed value added to the opening bid. The tax deed is publicly auctioned by the Clerk of the Court and issued to the highest bidder. Pursuant to Florida Statutes 197.502 and 197.542, the tax deed applicant will be required to pay the one-half assessed value on homestead property if there are no other bids in or to retain the tax deed.