San Joaquin County Treasurer-Tax Collector Defaulted Property Taxes. Shabbir A. Khan

Transcription

1 Shabbir A. Khan 1

2 HISTORY 1849 First California Legislature San Jose Counties Formed (more later) 1879 Counties Granted Direct Police Power 1879 Constitution Created Treasurer, Tax Collector, Auditor, Assessor, others 1861 Tax Collector Responsible to Collect Taxes (previously Treasurer then Sheriff) 2

3 Basic Rules Unpaid Taxes after 6/30 Defaulted Defaults are Real Property Taxes with Additional Penalties, Costs, Fees, Interest Defaults for 5 Years Power to Sell Recorded Auction More Fees Added Minimum Bid Total Default Owing 3

4 Options 3 Types Public Auction Public (live) or Online Sealed Bid Contiguous Parcels Agreement Sales Taxing Agencies and Nonprofit Organizations for Public Benefit 4

5 Credit Sale Options SJCo. No Credit Sales Prefer Certified Funds Deed Recorded in 10 Days Credit May take Longer Unsold Parcels TTC Discretion to Reduce at Next Auction 5

6 Prepare for Auction Legal Description from Assessor Record Power to Sell Determine Auction Date Conduct Parties of Interest Search Notify Taxing Agencies List of Properties to Board of Supervisors Certified Notice to Taxpayer Listing for Potential Bidders 6

7 Prepare for Auction Legal Notice in Paper 3 times Must be Newspaper in County Seat Update List when Removed or Redeemed Remove Bankruptcies Staff to Conduct Auction Register Bidders Conduct Auction Close Auction 7

8 Prepare for Auction Confirm Winning Bidders Provide Receipt Verify Deed Info Deposit Funds Distribute Funds Notify Auditor-Controller & Assessor Record Deeds Return Overpayment Determine Excess Proceeds over $150 8

9 Prepare for Auction Notify Parties of Interest of Excess Proceeds Excess Proceed Claims up to 1 Year from Recorded Deed Approve or Deny Claims Allow 90 Days after Approval/Denial for Objections Resolve Objections and Award Excess Proceeds SJCo. BOS Delegation Excess Proceeds to TTC 9

10 Auction Problem Highest Bidder Doesn t Pay SJCo. Confirms Bidder Before Next Parcel Auctioned Not Happened, but Legal Action if Not Paid Legal Costs Responsibility of Bidder 10

11 Pre-Registered Bidder Available for Online, Public, & Agreement Sales SJCo. does only for Agreement: SJCo. Requires 10% of Minimum Bids Must be Certified Funds Amount Applied to Final Sale Requires Approval by State (SCO) Requires Proof of Ongoing Nonprofit or Taxing Agency 11

12 Redeeming Property Taxpayer Can Redeem Up to 5pm Night Before Auction SJCo. Allows Only Certified Funds (or Title Company) Within 90 Days of Auction SJCo. Turns Off Online/IVR 1 Week Before Auction If Parcel Not Sold, Right of Redemption Reverts to Owner 12

13 One Year After Auction Previous Owner Right to Object Validity of Sale. Valid Objections: No Notification Incorrect Address Incorrect Amount Owing Incorrect Parcel 13

14 Causes of Rescinded Sales IRS Right to Undo Within 120 Days Incorrectly Listed on Auction List or Legal Notice Bankruptcy TTC Notified After Auction Prior Owner Has Valid Objection TTC Finds Clerical Error 14

15 New Owner Free & Clear R&T Code Section 3712 Lists 8 Items that Must Stay with Parcel 8 Items are Various Assessments Legislatively Required to Remain Most Asked Do I have to pay the Mortgage? NO 15

16 TTC Consent from Taxing Agencies TTC Does Not Need Consent Objections are: Request to Pull for Agreement Sale Insure Agency Receives Their Portion Owing on Tax Bill Must Announce at Auction 16