MAHONING COUNTY Lien sale brings in over $10M

Taxes have been paid in full or in part on more than 6,000 delinquent parcels.
By BOB JACKSON
VINDICATOR COURTHOUSE REPORTER
YOUNGSTOWN -- Mahoning County's first negotiated tax-lien sale has brought in more than $10 million in previously unpaid property taxes.
Treasurer John Reardon said more than 17,800 parcels were bundled for today's sale, and the taxes on 6,100 more delinquent parcels have been paid either partially or in full.
Reardon announced the sale earlier this year and sent out notices to affected property owners notifying them that their parcels were targeted for inclusion.
Since then, back taxes have been paid in full on 5,016 of those parcels; 1,109 more are on payment plans to pay the arrearages, Reardon said.
That left 17,862 delinquent parcels, whose tax liens were sold to American Tax Funding of North Palm Beach, Fla., which was the high bidder in January.
The revenue
Reardon said $10,043,400 in delinquent taxes has been collected through revenue from the lien sale and through taxes that were paid before the sale.
Most of the revenue will be distributed among the county's school districts, with other taxing districts such as Mill Creek Park, Mahoning County Children Services, Western Reserve Port Authority and others also to receive a share.
The largest beneficiary will be Youngstown City Schools, which will receive nearly $2.5 million of that revenue. That's because the vast majority of the delinquent properties were in the city.
Boardman Schools is the next-highest recipient at $920,800, figures from the treasurer's office show. A total of 21 taxing districts were to receive money from the lien sale.
Reardon was to have a reception today at the county courthouse with representatives of all the recipients.
The Florida company bought the county's tax liens against delinquent parcels and will in turn have a chance to collect the delinquent amount from the property owners, plus 18 percent interest.
If the money is not paid within one year, the investor can foreclose on the property to recover the investment. If the investor bought the tax lien certificate for less than the delinquent amount, the balance of the debt can be wiped off the county's books.
bjackson@vindy.com