- Why do real estate owners let taxes become delinquent for two years or more
- Owner dies, no heirs.
- Owner dies, numerous heirs, no one heir wants to pay the taxes because the other heirs refuse to pay their share of the taxes or will not sign over their claims to any one person.
- The address of the property owner changes and the collector is not notified, therefore statements are returned unclaimed by the post office.
- Property owners unable to pay monthly payments to Banks or Mortgage Companies, the lending institution fails to foreclose, and the owner abandons the property.
- Property owner abandons the property for varied reasons.
- Why do Collectors have to offer property for sale for delinquent taxes?
- When the yearly tax books are delivered to the Collector by the County Clerk, the Collector is charged for the total amount of taxes due and payable. It is the Collector’s responsibility to collect the entire amount on those tax books.
- If taxes are not paid they are transferred to the delinquent tax book. When they become delinquent for two or more years, by law, the collector must offer for sale.
- The County Tax Sale is conducted on the 4th Monday in August
- The tax sale list is printed in a general circulated newspaper three consecutive weeks, at least 15 days prior to the sale date.
- Waiting Period After Purchase
- You have between 12-18 months to get your collectors deed
- If not redeemed before expiration of the waiting period, the holder of the Certificate of Purchase is entitled to a Collector’s Deed, subject to the following conditions.
- If the title search indicates any such lien or claims, such person, lending agency and the current legal owner, must be notified by registered letter that they have 90 days from the receipt of said letter to redeem the property. If not redeemed after the expiration of said period, the tax lien purchaser will present a copy of the title search report along with a sworn affidavit that the above mention have been notified accordingly. A Collector’s Deed will be issued after these requirements have been met.
- Title search to determine any recorded liens or claims on the property.
- Third Offerings
- If not redeemed before expiration of the waiting period, the holder of the Certificate of Purchase, is entitled to a Collector’s Deed, subject to the following conditions.
- Title search to determine any recorded lien or claims on the property.
- If the title search indicates any such lien or claims, such person, lending agency and the current legal owner, must be notified by registered letter that they have 90 days, from the receipt of said letter to redeem the property. If not redeemed after the expiration of said period, the tax lien purchaser will present a copy of the title search report along with a sworn affidavit that the above mention have been notified accordingly. A Collector’s Deed will be issued after these requirements have been met.
- Subsequent Offerings
- Collector may require at his discretion a title search, if he suspects there may be a lien or claim on record. Otherwise there is no redemption period on third offerings.
- Who may redeem ?
- Anyone may redeem including owner of the property, or anyone on his/her behalf, prior to the expiration of the waiting period, except for final offerings.
- Redemption does not change ownership of the property.
- If property is redeemed
- Person who redeems must pay all costs occurred by the purchaser, including title search. Plus interest at the rate of 10% per year on base tax amount only, and 8% interest on all County and City taxes paid after purchase by the holder of certificate of purchase.
- Buyer Beware
- Be sure you know the property you are bidding on.
- Price (is it worth the amount of you bid, including cost of title search, city taxes and possible liens by City for weed cutting, etc.)
- No Bank or Mortgage Company will lend money on a Collector’s Deed, because you can not purchase title insurance, unless you file suit in circuit court to quiet the title, which could cost several hundred dollars.
- Would these extra costs in addition to the bid amount exceed the value of the property?
- The value of the property is only good as its title.
- Bidders Rights
- 1st, 2nd and 3rd offerings; you are not purchasing the property at the time of sale. Your are only purchasing a tax lien on the property (Not The Property).
- You have no ownership rights.
- You cannot gain immediate possession of the property.
- You can make no improvements. You cannot destroy or tear down any existing structures, fences or any other improvement regardless of the condition.
- You cannot rent or lease to another person or use for the production of income. Such rents and income will be considered income due to the property owner, and used as a claim to redeem the property.
- None of the foregoing can be done, until such time as a Collector’s Deed is issued.
- Who May Bid?
- Any Missouri resident that is currently not delinquent on any property tax. A sworn and notarized agreement stating such, must be given to the collector prior to auction.
- Out of state bidders may bid after filing an agreement with the collector as required in RSMo 140.190.
- Bidding Procedure
- Collector will give the parcel number as published in the weekly record paper and announce whether it is a 1st, 2nd, 3rd, or 4th(Subsequent Offering).
- Announce the property owner’s name and the legal description and the amount of total costs pertaining to the said property.
- Request bids for said tract, initial bid must be for the amount of taxes, interest, penalties and publishing fees.
- Subsequent bids must be in increments of at least five dollars.
- When the bidding ceases, the highest bidder will give the name or names and address of said bidder, and agree to pay the total amount of the bid at the conclusion of the tax sale.
- If the highest bidder fails to pay the amount bid to the Collector as soon as possible after the conclusion of the sale, he or she shall be subject to a penalty of 25% of the amount bid, and the property will be re-open to bids before closing of that business day (4:30 P.M.).
Any questions? Feel free to contact us:
DeKalb County Collector
PO Box 522
Maysville MO 64469
E-mail Us Here
P: 816.449.5810 ext.3
Delinquent Tax Certificate Sale