Franklin County Plans Tax Sale
February 23, 2009
Just inside the door at Franklin County’s tax records office, Lynda Messenger, the County Treasurer, shows off her hard work.
“This is a computer printout of all the delinquent real estate taxes we have,” she said as she held up a thick blue book. She thumbed through page after page, dating back to 1986.
“It bothers me there’s one tract that’s 20 years owed on it,” she said.
The taxes that were never paid total more than $264,000. Now the county’s Board of Supervisors has given Messenger the ok to try to sell those tracts of land for taxes.
“This is the last resort. We’ve done everything we know to do to collect the money and there’s nothing to do but a sale to clear it up,” she said.
In many cases, Messenger said the owners died years ago. She said the there were about 10 lots at the Melody Lake Estates that haven’t been paid in taxes. In this case, a man who passed away had owed money since 1992, she said.
Once Messenger finds a firm to work the tax sales, the firm will have to get in touch with property heirs.
“Maybe a grandfather passed away years ago and maybe nobody wants to pay because they won’t get anymore out of it,” she said.
Then the news of the tax sale will have to published in the paper.
During a time everybody has to watch their money, she said, “Of course, this would be extra money we don’t have, which could be spread over different departments the county would deem most necessary.”
County to auction thousands of tax liens
February 23, 2009
County to auction thousands of tax liens
BY STEPHANIE A. WILKEN, SUN STAFF WRITER
February 14, 2009 – 8:46PM
Yuma County will auction thousands of liens on properties with unpaid taxes, and county officials say investors could earn an interest rate as much as 16 percent.
The 2,016 liens, worth $1.5 million and listed in The Sun Monday, are all from county property with unpaid taxes, and the public can purchase the liens in a Feb. 25 auction. The buyer is not purchasing property, but the lien on the property.
Yuma County Treasurer David Egeberg said the county benefits from getting the property taxes paid, and the investors benefit by earning as much as 16 percent interest on the lien.
And in today’s economy, 16 percent might look good to investors.
“Right now nobody is earning any interest anywhere, so they’re trying to get it where they can,” Egeberg said. “The investors think it’s a win-win.”
This means if an investor bought a lien worth $100 at a 16 percent bid, he or she would receive $16 in income per year, Egeberg said.
Deputy County Treasurer Anna Hernandez said the property owner still pays taxes to the county, then the county pays the investor a percentage of the lien.
Investors purchase the liens at auction for the amount advertised, anywhere from around $7 to more than $63,000, plus a $20 fee per parcel.
The bidding starts at 16 percent interest, which falls as bidders compete for a property.
But, the investment could be a gamble.
Egeberg said property owners have three years to pay back taxes before losing the property.
In addition, if the property owner pays the back taxes by Feb. 27, the last business day in February, the investor doesn’t earn interest on the lien but can get a refund for the amount paid, minus a $10 fee. Hernandez said the money could get tied up if the property owner claims bankruptcy.
The number of liens increased “a little bit” more than last year, something the county staff sees every year, Egeberg said. Last year, there were 2,004 liens, 12 fewer than this year.
He said the reason people don’t pay property taxes varies.
Some people just may not realize they owed because the mortgage company didn’t pay it, or they were out of town when the bill was due. Or they might have bought property without realizing taxes were owed on it, Egeberg said.
Egeberg said in the end, between 98 to 99 percent of the taxes get paid, leaving 1 or 2 percent of the properties with unpaid taxes, which he said is a “really minor amount.”
Hernandez said the county will end up auctioning 50 to 100 fewer properties than the 2,016 listed in The Sun Monday. She said those property owners will pay the back taxes before the auction.
Egeberg said it’s important that people realize they’re not purchasing property at the auction.
“Just because the property is listed (in the paper) doesn’t mean those properties and homes are going to be lost. In the whole scheme of things, very few of these properties will ever change hands, but it’s part of the state law.”
The auction is Wednesday, Feb. 25 at the Yuma County Board of Supervisors Auditorium, 198 S. Main St. Signup starts at 8 a.m. and the auction at 9:30.
For more information on how the auction works, visit the county treasurer’s Web site at www.co.yuma.az.us/treas/taxlien.htm.
Bargain hunters expected at county’s annual property auction
February 23, 2009
Bargain hunters expected at county’s annual property auction
Union-Tribune Staff Writer
3:12 p.m. February 17, 2009
The local housing market is slumping along with the nation’s economy but that likely won’t stop bargain hunters from taking part in San Diego County’s annual property auction.
The county is holding a Feb. 25 auction at the San Diego Convention Center to sell nearly 150 properties saddled with unpaid taxes – in many cases for far less than their market value. The annual sale has become a ritual event for people who love a good deal.
The properties become part of the auction when an owner fails to pay taxes for five years despite repeated attempts to collect by the county, which can then sell the property to recoup the money owed.
Taxes owed on the properties range from $1,200 to $212,300, and the amount owed is used as the minimum bid for the auction.
This year’s auction includes 101 timeshares, 38 unimproved lots and homes in Oceanside, Escondido, National City and Lakeside.
Property owners have until 5 p.m. on Feb. 24 to pay their back taxes and pull their property from the auction.
Last year, the county initially had 189 properties ready for auction but several owners came forward to pay their taxes before the deadline. That left 83 properties in the auction, 64 of which were sold for a total of $722,100.
County Treasurer-Tax Collector Dan McAllister said he hopes to raise about $335,000 in this year’s auction.
He has made a significant change to the auction this year, requiring would-be bidders to pre-register by Friday. He said the deadline was needed to give potential buyers ample time to research the properties before bidding.
Research is a must for any bidder because the property could have a lien on it, which would then be assumed by the new owner. The auction only serves to pay the taxes owed the county. The state or federal government could also have a lien on the property.
The properties are sold as is, and may need significant improvements.
Interested bidders can go to any of the tax collector’s branch offices and pay $50 for a packet, which includes an auction book detailing the properties.
Pima County’s annual property tax lien
February 23, 2009
Pima County’s annual property tax lien sale starts Feb. 25 and with the economy the way it is, Treasurer Beth Ford says she is curious to see just how low lien buyers are willing to go.
With the federal funds rate bumping along at near zero percent interest, Ford says it will be interesting to see how banks and other investors in tax liens react.
The auctioning for liens starts at 16 percent, then investors bid down with the bidder offering the lowest rate winning. In past years, typical interest rates have been in the 5 percent to 7 percent range but Ford says they might be lower this year.
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This year there are 13,493 parcels included in the tax lien sale. While that is up about 8 percent from last year’s 12,516 properties, Ford says it still only represents a small fraction of the more than 400,000 parcels in the county, which increased by just under 10 percent in the intervening year.
Of the properties that have their tax liens up for sale, between 4,000 and 6,000 will actually get sold.
Ford says typically up to 200 prospective buyers of tax liens show up for the sale when it starts in the Board of Supervisors hearing room in the County Administration Building, 130 W. Congress St. But, she says, but when the bidding starts going, fewer than 100 actively participate.
And, unlike some other Arizona counties, Ford says her office is sticking with a live in-person auction, rather than going to an online system.
“We hear from our tax lien holders that they prefer the live auction,” she said, adding she also thinks it’s more fair to those involved.
Most every state has a mechanism for dealing with properties whose owners are delinquent on taxes. In Arizona it’s the annual tax lien sale. Every county conducts a sale.
From the counties’ point of view, the goal is to get the taxes they’re owed. So, they publish this list of properties, which includes the description from the County Assessor’s tax rolls, the owners, and the amounts of the taxes owed, including interest.
Ford says Pima County collects about $1 billion a year from property taxes and the tax liens that are up for sale represent about $20 million worth. In the end, the tax lien sale brings in about $4 million to the county.
For people who might have seen a TV infomercial, Ford suggests you might still want to come watch what happens before jumping into the fray. And remember, investors are only buying a lien certificate, not the actual property.
There may be certain extenuating circumstances that would make a lien less appealing to an investor.
Once a lien is sold, law prohibits the start of foreclosure on the lien for another three years.
Finally, for anyone who does go to the auction, Ford says to be prepared. Properties are auctioned off in an average of 20 seconds each.
Liens in Daily Territorial
A listing of all 13,493 parcels in Pima County with tax liens going up for auction will be included in The Daily Territorial on Wednesday (Feb. 11). Regular subscribers to The Daily Territorial will receive the listing as part of their normal subscription. Individual copies are for sale at $10 each at Territorial Newspapers, 3280 E. Hemisphere Loop (on the northeast corner of Valencia Road). Phone: (520) 294-1200
Graham County prepares for tax lien sale
February 23, 2009
Graham County prepares for tax lien sale
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Property owners who are behind on their property tax payments still have time to pay their tax debt before the annual Graham County tax lien sale Feb. 25.
“We’re auctioning taxes, not property,” said County Treasurer Jean Reynolds.
Those who owe back taxes on their home or land have until Feb. 24 to pay their back taxes.
As of Jan. 29, almost 600 parcels in Graham County were eligible for the tax lien sale. Last year, tax liens valued at $147,000 were sold, while this year, the amount of taxes owed is $177,000, Reynolds said. The expectation is that the amount of back taxes and the number of parcels will be reduced before the tax lien sale.
“If the owner can, it’s best to pay before the sale,” Reynolds said.
Even if property owners pay nothing before the tax lien sale, they will not automatically lose their property. Instead, they will have to pay their tax debt — plus interest — to the holder of the tax lien.
Reynolds explained that back taxes on parcels throughout Graham County will be auctioned to the lowest bidder.
Investors — those interested in buying a tax lien — begin bidding at 16-percent interest.
The bidding continues until no one offers a lower bid. The low bidder then pays the delinquent property taxes plus fees.
Property owners who have tax liens must pay the lien holder the property taxes plus the amount of interest agreed upon at the tax lien sale, Reynolds said.
If property owners have not paid back taxes plus interest after three years the lien holder has the right to begin legal proceedings to foreclose on the property.
Reynolds said there are two reasons to purchase tax liens — as an investment to make money from the interest or in the hope to eventually gain title to the property.
“In either case, the property acts as collateral,” Reynolds said.
She said property owners who cannot pay the whole amount due should try to make payments to the treasurer’s office. Sometimes, reducing the tax debt makes the property less desirable to an investor, who is seeking to make a profit from the interest on the tax lien.
A list of the tax lien properties and the amount owed for 2007 is available on the county’s Web site, http:// www.gra-ham.az.gov. Click on county offices, then county treasurer and finally tax lien information.
Maricopa County Tax Lien Sale
February 23, 2009
This Monday, Feb. 9, 2009, the annual tax lien sale for Maricopa County will be held. The tax lien sale is for unpaid property taxes, both residential and commercial, from 2007.Maricopa County has an estimated $47.5 million in unpaid property taxes to auction off on more than 34,000 parcels of land. This includes both developed and undeveloped property. Arizona statutes require that investors bid on property tax liens with interest rates starting at 16 percent. The lowest bidder (lowest interest rate) wins the right to purchase the tax lien from Maricopa County.
If the property owner pays the arrearage on the property taxes the investor receives his investment (the amount of the tax paid) plus the interest accrued at the rate bid at the auction. If the property owner fails to pay the delinquent property taxes the investor has the option to file a judicial foreclose on the property after three years. Property tax liens take precedence over mortgages and even IRS liens so after the judicial foreclosure the investor will own the property free and clear of subordinate liens.
Investors must thoroughly research the situation before bidding on a property tax lien because you could be paying the property taxes on an environmentally contaminated property, a condemned property, an orphan parcel, or a property with no economic value. The Maricopa County property tax auction is conducted online and investors must make a deposit of 10 percent of their allowed bid amount, with a required minimum deposit of $500 to be eligible to participate in the online auction. All payments must be made on the Maricopa County Web site. If you are interested in finding out more about participating in the upcoming Maricopa County tax lien auction you can register at the Maricopa County Treasurer’s Web site..
Iowa looks to collect overdue fees, taxes
February 23, 2009
Iowa looks to collect overdue fees, taxes
Associated Press
3:14 PM CST, February 22, 2009
An Iowa lawmaker says it’s time for people who owe the state money to pay up.
Rep. Paul Bell, D-Newton, has filed a bill that targets owners of mobile or manufactured homes who are delinquent on property taxes by preventing them from renewing their vehicle registration.
Bell said the bill, which is being pushed by some local governments, is a mostly symbolic gesture, but one that’s gaining attention.
He says the state needs to do something to address the $525 million that is owed the state in unpaid fees, fines and taxes, according to the Iowa Department of Revenue and Finance.
That doesn’t include what’s owed to the states 947 cities. Des Moines alone has more than $1 million in unpaid parking tickets.
“Maybe we need just a whole overhaul, whether it’s court fees or anything else,” said Bell, who filed the bill on behalf of his county treasurer. “It’s an issue we have to look at but there’s a fine line. Do we put them in jail? But then you pay for that, too. It’s just a vicious circle.”
Bell says his bill targets owners of mobile and manufactured homes because it’s difficult to collect unpaid taxes on such property through the usual means.
Steven Johnson, a mobile home owner in the Pine Grove Mobile Home Park in Des Moines, owes about $58 for taxes and late fees that are about five months overdue. He said the proposed law doesn’t make sense.
“I don’t think that would be right. For a measly $55?” he said.
Johnson said restricting his vehicle registration would make it difficult for him to work.
Delinquent taxes on mobile homes, like most property, can be sold at tax sales to investors who hold a tax lien certificate until the owner pays the tax and interest to the certificate holder.
Unlike other property, however, most tax certificates on mobile homes go unsold because buyers consider them poor investments. Mobile homes with delinquent taxes are often uninhabitable and are worth little if the certificate holder were left to claim the home’s deed.
In addition, most mobile home owners do not own the land where their home sits. The owners of Pine Grove Mobile Home Park, for example, pay $25,000 a year in taxes and are current on those payments. However, multiple tenants are behind on their individual tax on their mobile home.
In Polk County alone, there are 866 mobile homes that are delinquent. Of those, 299 have unredeemed tax sale liens worth $84,793.
“It’s affordable housing. But, just like people who live in regular homes, you have a percentage who don’t take care of their business,” said Darrell Bauman, president of the Iowa State County Treasurers Association, a group that supports the bill.
The Legislature approved a measure in 2006 that gives cities the ability to place a hold on income tax returns for residents who don’t pay fines, but the law doesn’t include unpaid mobile home taxes.
“Everybody has got to pay their taxes. Ignoring that because times are tough is not fair to everybody else,” said Jay Syverson of the Iowa State Association of Counties.
Bell admits the proposed law probably won’t pass because of concerns about its affect on the poor.
Tim Shanahan, executive director of Hawthorne Hill Ministries, a Des Moines-based group that operates housing programs for homeless families, opposes the bill.
“Something like that would make it difficult for families to do their daily functions they need to survive, like going to work,” Shanahan said.
Random Bid Tax Sale
February 23, 2009
Random Bid Tax Sale
I really don’t understand why a jurisdiction would choose a random bid process for selling tax liens. First, bidders cannot pick and choose which properties to buy because they may only have 1 chance to bid if your number is only called once. Second, it does not allow the purchasers a chance to do their due diligence on the properties. They would have to drive by every property being sold so that they know what they may have the chance to bid on at the tax sale. Third it does not create any additional revenue for the jurisdiction because the tax liens do not get bid up.
It really is a lose/lose bidding process. The only real benefit for the purchaser is that the can buy the lien at face value and do not have to pay a premium. But the costs far out way the benefits of random bid process at tax sales.
County to delay filing property tax liens
February 23, 2009
County to delay filing property tax liens
County to delay filing property tax liens
Thursday, August 21, 2008
The Allegheny County officials in charge of collecting unpaid real estate taxes yesterday announced a 60-day reprieve, which they hope will give delinquent taxpayers a chance to save their properties.
County Controller Mark Patrick Flaherty, Sheriff William Mullen and Treasurer John Weinstein announced they will delay the official filing of the 2007 county real estate tax liens until Oct. 1.
The officials said the approximately 40,000 liens ordinarily would have been filed by the controller in July or August. The delay will give delinquent taxpayers additional time to pay without incurring further penalties and costs.
“In these harsh economic times, measures must be taken to alleviate some of the financial pressures felt by citizens,” said Mr. Flaherty. “Delaying the filing is a viable solution that should enable seniors and lower-income individuals the additional time needed to seek assistance.”
Mr. Weinstein said the delayed filing should be “seen as an incentive for people to come in and talk to us about their financial situation.”
“Two months is an adequate amount of time for people who are cash-strapped to do something about their predicament,” he said. “They can talk to us and maybe we can figure out a payment plan or some other alternative that doesn’t involve us putting their property in a sheriff’s sale.”
The three officials also will appoint a Taxpayer Task Force to study how the county can help delinquent taxpayers.
The panel will be responsible for examining specific measures and making recommendations that can be implemented for those affected by the nation’s housing crisis.
County Chief Executive Dan Onorato’s spokesman, Kevin Evanto, said, “Mr. Onorato is looking forward to working with the proposed task force on this issue.”
RI gov pays more than $12,000 in back taxes
February 23, 2009
RI gov pays more than $12,000 in back taxes
RI gov pays more than $12,000 in back taxes
August 28, 2008
PROVIDENCE, R.I. –Rhode Island Gov. Don Carcieri has paid more than $12,000 in back taxes after being issued a tax lien on a vacation home in Florida.
Carcieri and his wife, Suzanne, were issued the lien on one of two condominiums they own in Stuart, Fla., after failing to pay the last two years of property taxes on the home.
Carcieri spokeswoman Amy Kempe said the governor didn’t know about the tax problem because the bills had been sent to his former address in East Greenwich.
She called it an oversight and said the governor paid the back taxes by Federal Express on Wednesday after being alerted by the media.