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Posted by Lisa Miette, Washburn, April 14, 2010:

The Town of Washburn (about 1,200 taxable properties) is looking for options with respect to what to do with our “tax acquired” properties.  There is one property that is vacant and eight that are not vacant.  Of the eight, only one resident is making a good-faith effort to catch up.  Most of the eight also have high water and sewer bills… but that's another email J !! Anyway, at our meeting next month, I would like to be able to tell our Council how other towns handle their tax acquired properties, i.e.: first offer the property to abutting property owners; treat each property on a case by case basis as opposed to having a set policy.  All thoughts, ideas, policies and procedures will be greatly appreciated.

Responses: Searsmont has few foreclosures.  The town votes each year to allow the Selectmen to dispose of foreclosed properties as they choose, and they look at each case individually.  If the owner wants to retain, they have to pay up all due taxes, interest, and fees, and often are required to prepay the upcoming year, or they may enter into an agreement for a payment plan which includes paying all of the taxes, fees, and interest up to date on a fixed schedule.  In addition, they are required to pay for the cost of the Town's lawyer to draw up the payback agreement and/or the quit claim deed once everything is paid off ($125-225).  If they default on the payment plan, they lose the property and it is put out to bid.  The last one we put out to bid, the Selectmen set a minimum price, and required a 10% down payment with the bid.  They would return the checks of any unsuccessful bidders, and had the right to refuse any and all bids.  They do not sell properties for the taxes due only, but try to set a fair market price on the low end, depending on the property.    We spend a lot of time and energy on these, and the town should not take the bare minimum reimbursement.   It gets more complicated when the properties are occupied, and if the Town owns a property for more than 60 days, they are required to insure it. If a property is returned to the owner, they are told up front that they will not receive the same courtesy again if they default to the point of foreclosure—they will lose the property.  We have also waived foreclosure on one occasion, when the mobile home on a rented piece of land burned—so there was nothing to foreclose on.  However, the taxes were fairly assess and unpaid from when the mobile home was there, and will remain as an outstanding lien until the person pays them.  This required a special town meeting vote prior to the date of foreclosure, but our hope is that the person will want to borrow money or finance a home, and they will have to clear the debt to be able to do that or to improve their credit rating.  You might also do this if there is a property you do not want to foreclose on as it would be a greater liability to the town than it is worth (a toxic waste site, etc.) (Kathy Hoey, Searsmont)