Mitch Goldstein | Coach Mitch | December 17th, 2007Tax lien auctioned
Herald-Star Steubenville, OH December 17, 2007 By Michael D. McEleain
NEW CUMBERLAND – According to Liz Fahey, chief tax deputy for Hancock County, an auction on the tax lien for Rosemont Manor was conducted, and the lien was purchased by Loraine Barberino and Tamara Semer, who reside in Fort Lauderdale, Fla.
“There were several interested bidders for that particular piece of property,” Fahey said.
When the bidding ended, the final tax lien auction amount totaled $19,874.63.
The owner of Rosemont Manor, Rosemary Susko, has 18 months to pay the 2006 delinquent taxes as well as the tax obligation for 2007, according to Fahey. If successful, the property will remain with Susko.
In March, Weirton zoning officials denied an application for what was considered an alternative bed-and-breakfast establishment.
In July, district court Judge Arthur Recht ruled that the business could reopen as a bed and breakfast but that the services offered as the “House on the Hill” were to be suspended. The Web site promoting the alternative lifestyle nature of the business also was shut down and removed by court order.
Fahey said the auction on Nov. 8 saw a significant increase in property tax liens being purchased.
“There was around 50 percent more property tax liens auctioned off and purchased this year than the usual amount,” Fahey said.
Some 111 parcels in Hancock County were auctioned off – compared to 57 parcels last year – and the winning bidders ended up paying $121,117.19 for them.
Straight said any property owner looking to redeem his or her parcel will have to pay the delinquent tax obligations and a 1 percent per-month interest rate until the matter is settled.
“A majority of the delinquent tax property owners end up paying it off and redeeming the property at some point,” Straight said. “It’s quite a few of the same ones each year.”
In any given year, Straight said approximately 12 properties end up being transferred to the individuals making successful bids during the tax lien auction.
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Coach Mitch’s REFLECTIONS
This story has several interesting aspects.
The owner apparently is not doing enough business to pay their property taxes. In an attempt to keep the property, the owner wanted to try another type of business. However, the town denied a zoning application to the owner for the new business idea.
Zoning: is it constitutional?
I am not in favor of zoning as a concept. I believe it is not constitutional. It is an abrogation of property rights and is a “taking” without any compensation.
Therefore, at the same time that the town is taxing a property, it is also not allowing the property to do business. This is a double whammy. I thought these things only happened in banana republic’s! Who says that government can’t be creative?
Tax Liens
“In any given year, Straight said approximately 12 properties end up being transferred to the individuals making successful bids during the tax lien auction.”
There were 57 tax lien certificates sold against parcels last year, which was more representative of a typical number than this year’s 111.
If 12 of 57 properties are not redeemed in a typical year, that represents 21% of the total. This is a very high percentage of all the properties being put up for tax lien auction which will eventually be transferred to the tax lien certificate holder.
Get property for “pennies on the dollar”
The property owner has 18 months to pay off two years’ worth of taxes, about $35K. At that time the TLC holder can foreclose on the property.
This commercial property is probably worth at least $200K. If the TLC investor paid out $35K and got a $200K property, then that is 17.5% ITV, Investment To Value. WoW!!
We are told that, nationally, about 2% of tax delinquent properties are not redeemed. In this particular county, apparently 21% or one in five properties are not redeemed. WoW!!
That is why people buy tax liens here.
See Coach Mitch’s “Ridiculously Simple System…” ™ for details.
Good luck,
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