Cincinnati Confirms it Will Sell Property Liens

Hamilton County, Ohio plans for the first time to sell its delinquent property tax bills next year as it seeks to gather some return from the $60 million in delinquent payments on its books.

Hamilton, home to Cincinnati, would follow in the foot steps of Cuyahoga, Franklin, Summit and several other large Ohio counties that will sell their unpaid property taxes.

Hamilton County plans to hold an auction with firms bidding on the amount of interest rate they would charge the delinquent property owner. The firm offering the lowest rate wins the entire contract in the so-called bulk sale, according to the treasurer’s office.

Bidding begins at 18 percent and moves in quarter point increments. Other Ohio counties that have recently held similar auctions have seen contracts bid down below the state’s minimum interest rate of 6 percent so that becomes the floor for the contract, according to the office. The tax lien lasts for three years. After one year, the holder of the lien has the right to foreclose on the property.

Any auction is still over a year away. The treasurer’s office plans to send a notice to delinquent homeowners by next April prodding them to make the payment or get on a payment plan or their property could become subject to a sale next October.

Ohio had the fourth highest foreclosure rate in the country in October with one filing for every 290 households, according to RealtyTrak, a publisher of a comprehensive list of national foreclosure data. Ohio followed California and Florida in foreclosure activity in October with 17,276 filings, a 136 percent rise from October 2006, RealtyTrak reported.

Experts point to  Bank Atlantic, Mooringtax.com and Xspand as firms that are active purchasers of property tax liens. Xspand is a subsidiary of Bear Stearns, while Mooring Tax Asset Group reports it has serviced more than $1 billion in tax liens for its own account and for third party accounts. Fort Lauderdale, Fla.-based Bank Atlantic is a subsidiary of Bank Atlantic Bancorp.  

Hamilton County Treasurer Robert A. Goering told insideARM.com in October the county was considering selling its property tax liens (“Cincinnati Could Sell Property Liens to Collectors,” Oct. 8)