More prospective buyers have been eyeing Luzerne County’s tax-delinquent repository properties, said Sean Shamany, of county tax-claim operator Elite Revenue Solutions LLC.
“There is a ton of interest. I think it is tied into the market value of property now,” Shamany said.
Properties land in the repository if they did not sell at two prior auctions — the first-stage “upset” sale and the latter judicial “free-and-clear” sale.
Council approved the sale of 53 repository properties in January, and another batch of 50 sales is up for a council vote at tonight’s meeting.
For context, there were only 87 repository sales for the entire year in 2015, according to a prior published report.
Under the county’s repository protocols, the minimum bid is $500 for land parcels and $1,000 for those with structures. However, bids must start at the free-and-clear auction minimum bid amount if someone wants to buy them during their first three months in the repository.
Repository parcels are available for purchase at any time. Sales are encouraged because the county has amassed approximately 1,000 repository properties in limbo, with no active owners to maintain and pay taxes on them.
At the end of last month, the exact number of properties in the county’s repository pool was 989, Shamany said.
A list of available repository properties and information on all tax auctions is posted at luzernecountytaxclaim.com.
Shamany cautioned some repository buyers are not fully researching properties. This is a concern because they may end up deserting them later, continuing the cycle of landing back in tax claim instead of remaining on the tax rolls, he said.
Some incorrectly rely only on assessment record “situs addresses,” which are intended as a general geographic reference point and may not literally correlate to a structure, officials have said. Many situs addresses date back decades, and several contiguous but separate parcels may be lumped under the same situs address.
Instead, prospective buyers should match the unique identifier for each parcel — known as the property identification number, or PIN — to the boundary lines in the county’s real estate maps.
The county GIS/Mapping department offers a free online map to search all PINs at luzernecounty.org. This allows prospective buyers to determine the positioning of the parcel and whether those of interest are landlocked.
Lots containing yards, garages, driveways or other parking areas often are on separate parcels, even though they may only have value to an adjacent structure. Many are slivers too small for new structures under current zoning requirements. Property owners have no requirement to consolidate all their adjoining parcels into a single one through a reverse subdivision, which is why multiple parcels are often taxed individually.
The list of repository purchases now before council is posted in council’s voting meeting agenda at luzernecounty.org.
Upcoming auction
Thursday is the deadline for bidders to register for the next county tax auction to be held April 28, Shamany said.
As part of an attempt to crack down on irresponsible bidders who contribute to blight, last year’s state Real Estate Tax Law amendment requires county tax claim offices to cut off bid registration sooner so municipalities have time to research whether prospective buyers have code violations or landlord license revocations.
Bidders also have increased reporting requirements and must register in person, Shamany stressed.
Forms and more information about the new process are posted on the main page at luzernecountytaxclaim.com.
The auction starts at 10 a.m. in the King’s College Scandlon Physical Education Center, 150 N. Main St., in Wilkes-Barre, with COVID-19 protocols in place and attendance limited to registered bidders.
Approximately 80 properties are in the upset sale, which means buyers must pay all delinquent taxes and accept responsibility for any outstanding mortgages and liens.
Most of these properties are listed because the owners defaulted on payment plans, Shamany said.
The April 28 sale also includes a free-and-clear auction of approximately 200 properties.
Properties become eligible for auction if taxes have gone unpaid for two years. Delinquent owners can avoid a sale by filing for bankruptcy, obtaining a court order or paying the debt.