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HomeMy WebLinkAbout1992-03-09 92-157 ORDERDate 3"9"92L„v" Item No. 92-157 Item/Subject: Adopting Statement Entitled "Tax Collections Policy of the City of Burger" Responsible Department Legal Commentary: Current economic conditions have caused an decrease. in the number of private and bank foreclosure actions pending against properties located in the City of Bangor. The City of Bangor- is owed property taxes o number of such properties. The status of the City`s tax collections efforts ins such a mixed. In some c e have properly recorded and foreclosedCity tax liens. In other cases, w have foreclosed against the property owner, but not against the bank concerned. In other cases, tax liens have not matured so as to be rape for foreclosure. The proposed policy would state generally what the City will require, and to whom the City will quitclaim properties in which it has a tax interest, when taxes remain unpaid. The policy differs somewhat from past City practice, in that it provides that the City will quitclaim its interest in such properties directly to the mortgage holder, rather than the owner, inccertain circumstances. continued on next pageyn+,,"''o�+/`'^'I'•'.'' Deda19111"e Ne d FU Manager's Comments: So t;tL 6t kurwi, eiyaaneyer associated Information: order, Policy Budget Approval: N ItV r„u ee Di. r Legal Approval � � Acting Ozy sorm„r Iniroliuced For Passage First Reading ❑ Referral Page _of_ 92-157 Adopting Statement Entitled "Tax Collections Policy of the City of Bangor" Commentary (cont'd) Under present practice a City quitclaim deed of tax title to a property owner ma successor y have the effect, at least technically, of wiping out subordinate bank or private mortgages. By law, all bank or private mortgages are subordinate to the interest created by a matured tax lien. By authorizing issuance of a quitclaim deed directly to the mortgage holder, the',proposed policy would enable a foreclosing bank or other mortgage holder to pay off the City's outstanding taxes, without putting their mortgage at risk. In certain -case , this will help speed the City's tax collections process. 92-15] Amarate CwndBor Bragg March 9,1992 CITY OF BANGOR (TITLE.) (orbera--_...................Adopting-Statement-Entitled-^max-Collections- policy of.the City of B ngpr^,_. By to city Cwmml of die my efBmmor ORDERED, TEAT wamEAs, a recent increase in the number of bank foreclosure actions affecting properties located in the City of Bangor has created the need for a clear statement of the City of Bangor's tax collection policy with respect to properties in the City of Bangor Pending bank or private foreclosure; and WHEREAS, the City Council of the City of Bangor finds that the attached policy statement will facilitate the City's efforts to collect back taxes due on such properties; - NOW, THEREFORE, by the City Council of the City of Bangor, be it ORDERED, THAT the attached statement entitled "Tax Collections Policy of the City of Bangor" is hereby adopted as a statement of the City of Bangor's general policy with respect to collection of taxes assessed against properties within the City of Bangor that are pending bank or private foreclosure actions. In City Council March 9,1992 Passed i C1yCer 92-15] 0ROER Title, Adopting Statement Entitled Tax ............. Polic...:.. the City of Collections Policy of the City of Bangor AsAgned to Usameilman 92-157 Policy No. CITY OF BANGOR TAX COLLECTIONS POLICY 1.0 _Purpose The purpose of this policy is to state the City's policy regarding collection of delinquent property taxes and other charges due on properties in the City of Bangor that are also pending bank or private foreclosure action. This Policy is intended to be a general statement only. Release of the City's tax -acquired interest in any property is subject to ratification by the City Council in any individual case. 2.0 Policy 2.1 When the City's tax or other liens have not gone beyond the maturity date provided by statute, and the tax or other charge concerned is Paid by any party, the lien concerned will be discharged in favor of the property owner or successor. No quitclaim dead will be issued. 2.2 when the lien concerned is beyond the statutory maturity date, but has not been foreclosed, the City will issue a quitclaim deed to the property owner or successor only, following payment of the tax or other charge concerned by any party. 2.3 If a matured lien has been foreclosed as to all owners of the property concerned, the City will issue a quitclaim deed to the property owner o mortgage holder paying the tax or other charge Before a quitclaim deed is issued to the property owner, all outstanding City taxes and charges, including current year assessments and non -tax receivables owed by the property owner, must be Paid In full. 2.4 If a matured lien has been foreclosed as to the property owners and mortgage holders, the City will issue a quitclaim deed only upon payment in full of all outstanding City taxes and chargee, including current year assessments and non -tax receivables owed by the property owner. Once paid, the City will issue a quitclaim deed to the property owner or mortgage holder paying the taxes or charges concerned. 2.5 If the City has taken possession of a property following a tax foreclosure, the property will be sold to the party offering the best price, to include 92-15] payment of the taxes and chargee for which the property was taken. The party purchasing the property need not be a prior owner or mortgage holder. Following such a sale, the City will issue a quitclaim deed to the purchaser. 2.6 A quitclaim deed will not be issued under paragraphs 2.2 - 2.5 above unless approved in advance by the Bangor City Council. Following Council approval, the City's Quitclaim deed will he delivered to the party can- cerned only upon payment of a $50.00 administrative fee to the City's Tax Collector in accordance with Council Order #85-134 passed by the Bangor City Council on March 11, 1985. On request following payment of.the $50.00 fee, the City's Legal Department will record the original deed at the Penobscot Registry of Deeds at no additional charge.. 3.0 Questions Questions relating to this policy should be directed to the City Solicitor's Office. Edward A. Barrett City Manager Council Order # Effective Date Anigned to Cnuneflur Bragg March 9,1992 95-55 CITY OF BANGOR (TITLE.)yV[yeLr ------ ..............—AduPting..-Statement 'Entitled ...-'Tax"Collections .. Policy E the.,Ctpy f B,_gog 7,-- ' By City CPunuiE e/ Me CaV ofBansei: ORDERED, THAT WHEREAS,. a recent increase in the number of bank foreclosure actions affecting properties located in the City of Bangor has sated the need for a'clear statement of the City of Bangor's tax collection policy with respect to properties in the City of Bangor pending bank or private foreclosure; and WHEREAS, the City Council of the City of Bangor finds that the attached policy statement will facilitate the City's efforts to collect back taxes due on such properties; NOW, THEREFORE, by the city Council Of the City of Bangor, be it ORDERED, - ' THAT. the attached statement entitled "Tax Collections Policy of the City of Bangor" is hereby adopted as a statement of the City of Bangor's general policy with respect to collection of taxes assessed against properties within the City of Bangor that are pending bank or private foreclosure actions. to CuRn OM BANGOR, MANE MAR 10 A INi CGVY. Ai RSI nV V Pealed }10-92 - 4T7/trmx 3 + 95-55 policy No. \� CITY OF BANGOR TM COLLECTIONS POLICY 1.0 Purpose The purpose of this policy is to state the City's policy regarding collection of delinquent property taxes and other charges due on properties in the City of Bangor that are also pending bank or private foreclosure action. This policy is intended to be a general statement only. Release of the City's tax -acquired interest in any property is subject to ratification by the City Council in any individual case. 2.0 Policy 2.1 When the City's tax or other liens have not gone beyond the maturity date provided by statute, and the tax or other charge concerned is paid by any party, the lien concerned will be discharged in favor of the property Owner or successor. No quitclaim deed will be issued. 2.2 When the lien concerned is beyond the statutory maturity date, but has not been foreclosed, the. City will issue a quitclaim dead to the property owner or successor essor ons, following payment of the tax or other charge concerned by any party. 2.3 If a matured lien has been foreclosed as to all owners of the property concerned, the City will issue a quitclaim deed to the property owner or mortgage holder paying the tax or other charge. Before a quitclaim deed is issued to the property owner, ,all, outstanding City taxes and charges, including current year assessments and non -tax receivables owed by the property owner, must be paid in full. 2.4 If a matured lien has been foreclosed as to the property owners and mortgage holders, the City will issue a quitclaim deed only upon payment in full of all outstanding City taxes and charges, including current year assessments and non-tax receivables owed by the property owner. Once paid, the City will issue a quitclaim deed to the property owner or mortgage holder paying the taxes or charges concerned. 2.5 If the City has taken possession of a property following a tax foreclosure, the. property will be sold to the party offering the .best price, to include 95-55 16 payment of the taxes and charges for which the property was taken. The party purchasing the property need not be a prior owner or mortgage holder. Following such a sale, the City will issue a quitclaim deed to the purchaser. 2.6 A quitclaim deed will not be issued under paragraphs 2.2 - 2.5 above unless approved in advance by the Bangor City Council. Following Council approval, the City's quitclaim deed will be delivered to the party con- cerned only upon payment of a $50.00 administrative fee to the City's max Collector in accordance with Council Order 985-134 passed by the Bangor City Council on March 11, 1985. On request following payment of the $50.00 fee, the City's Legal Department will record the original deed at the Penobscot Registry of needs at no additional charge. 3.0 Questions Questions relating to this policy should be directed to the City Solicitor's Office. Edward A. Barrett City Manager Council Order S Effective Date A G R E E M E N T 95-55 I �' This is an Agreement between the City of Bangor (City) and the property owner (Owner) concerning payment of outstanding taxes and tax liens. Owner(s): Address: Tax Lien(s): Filing Date Book Page Deed of Reference: Property Address: Tax Account Number: ened Owner (if different than owner): - Mortgage Holder: __ ___________________ ___________________ Terms: Downpayment: $ Paid: Monthly Payments: $ 1st Payment Due Date: Monthly Due Date: (Final payment may be more or less for interest amount collected a due) ----------------------------------------------------------------------- WHEREAS, the City and the Owner agree that there is a tax lien filed against the Owners property described above; and WHEREAS, the period of redemption has or will expire on , and WHEREAS, the Owner desires to retain ownership rship of the property e described above and to pay the taxes d the City; and WHEREAS, the Finance Committee of the Bangor City Council authorized the Finance Director on November 2, 1992 to enter into payment arrangements for owners who are unable to redeem their property before the redemption period expires and allowing 6 months for monthly payments, IOW, THEREFORE, in consideration of the down payment and monthly payments agreed to above: the City agrees not to dispossess the Owner or sell the property described above while this Agreement is maintained; - the City and the Owner agree that this is a waiver of dispossession and/or sale of the property only and not a waiver of the automatic foreclosure under Title 36 M.R.S.A.; that the City has not subordinated its position to any mortgage holder or other party -in -interest concerning the property described above; that upon completion of the payment agreement and payment of $70+' for administrative and filing costs, the City will quitclaim its interest created by the tax lien described above to the Owner; and - fjTTRf NME N 1 �/ 95-55 that should the Owner fail to maintain this Agreement, the City may, at �1• its option, exercise all rights which accrue to the City due to automatic foreclosure of the tax lien described above including the sale of the property without additional notice to the owner, mortgage holder or other party -in -interest. Agreed to this day of 1994 For the City: Owner: Sohn Quartararo Finance Director STATE. OF MAINE lenobscot, as. , 1994 Personally appeared the above-named and acknowledged the foregoing instrument to be his (her) free act and deed. Before me, Notary Public/AttOrney-at-Law My Comm. Expirea: Penobscot, as. , 1994 Personally appeared the above-named and acknowledged the foregoing instrument to be his (her) free act and deed. Before me, Notary PubliC/Attorney-at-Law My Com. Expires: STATE OF MAINE Penobscot, as. , 1994 Personally appeared the above-named and acknowledged the foregoing instrument to be his (her) free act and deed. Before me, - Notary Public/Attorney-at-Law My Comm. Expires: *(Note: This amount applies only if payment schedule extends beyond the tax lien maturity date stated above.)