Financial companies looking at county tax liens
Published 9:42 am Wednesday, September 28, 2011
The disposition of property with delinquent taxes may come from an outside financial company.
On Monday the County Treasurer’s office held the second tax lien sale of the year with only three liens purchased. Those properties had just over $10,000 in back taxes owed. Approximately 300 liens were on the auction block.
County Treasurer Stephen Burcham began the sales last year as a way to bring more revenue into the county.
A tax lien sale allows potential buyers to bid not on the taxes of the property but on an interest rate they may receive if the property owner redeems the parcel after the lien is sold. That interest rate begins at 18 percent and goes down by quarter percentage points.
“It appears I will receive this week two proposals for negotiated sales,” Burcham said. “One company is in Huntington and one is in Ironton. Both companies assured me they hope to get a proposal to me this week and no longer than 30 days.”
Since the sales began close to $2 million has been recouped either through lien sales or property owners coming in to redeem their parcels by paying back taxes entirely or setting their tax bill up on a contract.
“We collected money this year that we may not have collected otherwise with people setting up on contract,” Burcham said.
There is approximately $60,000 coming in monthly on contracts that is taken directly from the taxpayers’ checking accounts. Contracts are on average for two years and no more than five years.
The next tax lien sale will be Nov. 28.