Nearly $300,000 generated from annual public auction of property for overdue taxes

Sep. 26--WEST MEAD TOWNSHIP -- Nearly $300,000 was generated Friday from the Crawford County Tax Claim Bureau's annual public auction of property for overdue taxes.

The Tax Claim Bureau holds the annual sale on properties with unpaid real estate taxes from three years ago or older.

This year's sale was held at the Crawford County Fairgrounds' Dairy Complex in West Mead Township rather than the county courthouse in Meadville due to social distancing requirements put in place because of the coronavirus pandemic.

This year's sale generated $294,786.16 as 37 out of 95 parcels on the list sold, said Christine Krzysiak, director of the bureau.

Each property is sold individually at auction by its corresponding parcel identification number with the minimum bid being the tax amount owed on the parcel, Krzysiak said.

All buyers purchased a property "as is," assuming any mortgages and other financial encumbrances on the property, Krzysiak said.

The money from each property's sale is applied toward overdue county, municipal and school district real estate taxes on the particular property, Krzysiak said.

If a sale generates more money than what is owed in back taxes, the excess funds then are applied toward current taxes on the property and then toward municipal liens, according to Krzysiak.

If any funds remain after satisfaction of all property taxes and liens, that money then goes to the property's listed owner at the time of the tax upset sale, Krzysiak said.

The individual sales of the properties won't finalize until around December, she said.

The Tax Claim Bureau now will send letters to all the delinquent property owners whose properties were listed for sale Friday, Krzysiak said.

In mid-October, the Tax Claim Bureau will petition county Court of Common Pleas to finalize Friday's sales, but the owners whose properties sold will have 30 days to file an exception with county court. If no exception is filed on a property, a deed will be sent to the new owner in early December, according to Krzysiak.

The properties that did not sell Friday now become county held and are the fiduciary responsibility of the Tax Claim Bureau, Krzysiak said.

Once this year's sales are finalized, the bureau is free to negotiate with individuals for a private sale of the unsold properties on the bureau's list.

The Tax Claim Bureau also may petition county court for a judicial sale of the properties that didn't sell.

At a judicial sale, all encumbrances, including liens and mortgages, except federal liens, have been removed via approval of county court. The property then is sold free and clear to the highest bidder on an "as is" basis.

Keith Gushard can be reached at 724-6370 or by email at [email protected].

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