1. Tax Deed Investment Group
Paul A. Krasker, Esq.
Cleartosell.com
Doug Gale
Terra Echelon

2. Mission of Tax Deed Investment Group
To establish a platform of best practice standards, thought leadership and education in all matters related to the process of tax lien foreclosures and tax deed issuance.

3. Goals – Immediate Tasks
Establish best practice standards for the pre-sale and post-sale settings to ensure members understand the process and adhere to a high standard of action.

4. Goals – Longer Term Tasks
Create marketing ideas for NTLA to show the positive side of tax lien foreclosure/tax deeds:
improve neighborhoods,
eliminate blight,
increase tax base.
Show how poorly written statutes can limit the marketability of these properties and well written statutes can enhance the value of neighborhoods.
REO Blight Control.

5. Goals – Finding a Balanced Baseline Standard (Based on West Virginia’s Declaration of Policy)
PART I.  §11A-3-1. Declaration of legislative purpose and policy.
In view of the paramount necessity of providing regular tax income for the state, county and municipal governments, particularly for school purposes; and in view of the further fact that delinquent land not only constitutes a public liability, but also represents a failure on the part of delinquent private owners to bear a fair share of the costs of government; and in view of the rights of owners of real property to adequate notice and an opportunity for redemption before they are divested of their interests in real property for failure to pay taxes or have their property entered on the landbooks; and in view of the fact that the circuit court suits heretofore provided prior to deputy commissioners' sales are unnecessary and a burden on the judiciary of the state; and in view of the necessity to continue the mechanism for the disposition of escheated and waste and unappropriated lands; now therefore, the Legislature declares that its purposes in the enactment of this article are as follows: (1) To provide for the speedy and expeditious enforcement of the tax claims of the state and its subdivisions; (2) to provide for the transfer of delinquent and nonentered lands to those more responsible to, or better able to bear, the duties of citizenship than were the former owners; (3) to secure adequate notice to owners of delinquent and nonentered property of the pending issuance of a tax deed; (4) to permit deputy commissioners of delinquent and nonentered lands to sell such lands without the necessity of proceedings in the circuit courts; (5) to reduce the expense and burden on the state and its subdivisions of tax sales so that such sales may be conducted in an efficient manner while respecting the due process rights of owners of real property; and (6) to provide for the disposition of escheated and waste and unappropriated lands.

6. Action Items – Short Term
Pre-Sale Best Practices to Assist Existing Owners
Be informative – provide notices early and often.
Create escalating penalties/interest to incentivize quick action.
Be firm on deadlines, but offer payment plants (short-term).
Post final notices on properties – the most effective form of notice.
Require some form of payment (in escrow) to stop or delay the process.

7. Action Items – Short Term
2. Pre-Sale Best Practices for Bidders
Understand what liens and encumbrances survive and do not survive the sale.
Municipal liens
HOA/Condo liens
IRS/SBA liens and mortgages.
Acknowledge no access to the property and assume the worst.
No trespassing allowed
Mostly abandoned property
Condition may deteriorate after sale.

8. Action Items – Short Term
Post-Sale Best Practices for Tax Deed Purchaser
a. Confirm proper notices and knowledge of hearing of
redemptive rights.
b. Tenant/Occupancy Issues.
c. Property Maintenance / Code Enforcement.
Payment of annual property taxes.
Working with local/county government to donate land bank non- viable properties (seek out potential grants, tax deductions from non-profits, or other methods to deal with properties that have no value or need to walk away from).
f. Obtain insurable or marketable title (quiet title action or tax deed certification services).

9. Action Items – Long Term
Find examples of tax deeded properties handled by NTLA members that improved a neighborhood or assisted an occupant (to use for marketing).
Create recommendations for changes to statutes to make tax deeds more reliable investments.

10. Suggestions? pkrasker@kraskerlaw.com dgale@reo-america.com
x 115

11. End
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