In yesterday's Courier Journal, 21 pages of delinquent property tax bills were published as a Legal Notice for their sale on July 21, 2011. The public at large then has the opportunity to purchase tax obligations from the County Clerk in exchange for a Certificate of Delinquency which attaches a tax lien against the property. In this way, the County is able to collect the delinquent taxes for their expenses and the purchaser is allowed to charge 12% interest against the debt until it is paid. Not too bad in a world where we get 1% or 2% on our savings accounts.
Of course, the problem is that you have to collect the money. If you are unable to collect, and the property owner fails to pay their property tax next year, you get priority to buy the next year's obligation as well. This would allow you to bring a foreclosure action against the property in order to have the debt satisfied. Having a tax lien against the property would put your obligation at the top of the line in satifying the debt and also would provide for you to collect reasonable and necessary legal fees.
If this sounds like it might be of interest to you, I'm afraid that it is already too late for this year. In order to buy the Tax Delinquency Bills, you have to register at least 60 days before the sale, which would make yesterday's notice in the paper about 24 days too late. With the sale schedule for July 21, the last day to register would have been May 22.
Maybe next year.
Have a great day. It looks like it is going to be a great one and be sure to let me know if you need any help with your real estate needs!
David
David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY 40299
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