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Strategic Auction Alliance to Handle April 10 Weymouth tax titles/possession Auction
Posted February 19, 2012
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Firm will conduct seminar to explain complex tax title process
Strategic Auction Alliance retained by Town of Weymouth for Auction of Tax Titles and Tax Possessions
WEMOUTH, MA -- The Braintree auction firm Strategic Auction Alliance has been retained by the Town of Weymouth to conduct a Tax Title and Tax Possession auction on April 10, 2012 at 10:00 a.m. at the McCulloch Building, 182 Green Street, North Weymouth.
Under Massachusetts Law, municipalities may issue a "Tax Taking" for accounts more than a year past due, changing the status of the account to "Tax Title". Once an account is in "Tax Title", taxpayers are responsible for 16% interest on the principal balance of the account. After 6 months of "Tax Title" status, municipalities can file for municipal foreclosure. Upon receiving a judgment of tax foreclosure from the land court, the municipality becomes the owner of the property, or, in other words, the property becomes a tax possession.
Foreclosure proceedings often take up to 18 months to complete. In 2004, Chapter 60 of the MGL was amended, allowing municipalities to assign individual tax title accounts at public auction to assignees/ investors for no less than what the town is owed. Assignments of Tax Titles by public auction allows cities and towns to immediately collect what they are owed, as Tax Title assignees/ investors must settle within 14 days of the auction. They immediately step into the shoes of the municipality. Assignees are allowed the same right of foreclosure as the municipality and in the event of taxpayer redemption are entitled to the stated 16% interest.
In April 2010, Strategic Auction Alliance conducted a similar auction for Weymouth that generated over $900K in sales and taxpayer redemptions. The 2010 Auction consisted of 22 Tax Titles and 18 Tax Possessions.
The 2012 auction will include 78 Tax Titles with a total face value due to the town of $2.51 million dollars with combined assessed property values of $18.11 million dollars. All property owners have been notified by certified mail and are allowed to pay off their taxes in full prior to the April 10 auction. Tax title assignments include residential homes, commercial property and vacant land. The tax possession list has not been finalized, but is anticipated to include 20 properties.
Strategic Auction Alliance Principal Tom Weitbrecht stated, "Few cities and towns have elected to take advantage of tax title assignment auctions, as the complex laws can be difficult understand. We are experts in the municipal Tax Title auction process and are pleased to have been chosen to assist the Town in its efforts. We are conducting a free investor's seminar on Tuesday March 13, 2012 at 7:00 in the meeting center of Tufankjian Toyota in Braintree. Boston Tax Title Attorney John Finnegan from the firm Tarlow, Breed, Hart & Rogers will be on hand to answer questions on the process." Private investors are encouraged to visit the web site to view the auction inventory and sign up for the seminar at www.StrategicAuctionAlliance.com.
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