Overview of Franklin County Tax Lien Sale
Introduction
Franklin County Treasurer Ed Leonard would like to thank you for your interest in our tax lien certificate sale. This site gives you a general description of how the sale works in Ohio and some specific information about the Franklin County tax lien certificate sale. You are strongly encouraged to familiarize yourself with the Ohio Revised Code as it pertains to the sale of tax lien certificates (ORC 5721.30 et seq.).
All available liens will be auctioned as a single block for a purchase price estimated to be several million dollars. Tax liens will not be sold individually and Franklin County does not sell “over-the-counter” liens. As in all Ohio counties selling tax certificates, the bulk sale or auction of tax certificates in Franklin County is not designed for individual investors.
Auction Details
The lien sale takes place annually around the 2nd week of November. Check back in late July to early August for the date, time and place of the auction.
Registration
Bidders seeking to participate in the auction of tax lien certificates estimated to be $3 to $6 million must complete an IRS Form W-9 Request for Taxpayer Identification Number and Certification and submit it with a refundable deposit of $500 about two weeks before the sale (an additional 10% purchase price deposit is due prior to the sale). The registration deposit must be in the form of a cashiers check, money order or certified check made payable to “[Your Company's Name] OR Franklin County Treasurer Ed Leonard.” By making the payment payable to yourself OR the County Treasurer, the check can be returned to you on the day of sale if you are not the successful bidder. The $500 deposit will be returned to all unsuccessful bidders at the conclusion of the auction. The $500 deposit of the successful bidder will be applied to the purchase price of the liens.
A recent change to Ohio Revised Code Section 5721.32 now requires prospective bidders to submit a letter from a financial institution stating that the bidder has sufficient funds to pay the purchase price for the tax certificates and a written authorization for the treasurer to verify such information with the financial institution. These verification documents must be submitted about two weeks before the lien sale. Any prospective bidder that fails to submit the required letter and authorization, or whose financial institution fails to provide the requested verification, shall NOT be permitted to bid. Contact the Tax Lien Department at (614) 462-3431 for information regarding the anticipated purchase price for purposes of this financial verification.
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Conduct of the Auction
The bidders are purchasing a large group or portfolio of lien certificates (estimated to be $3 to $6 million) for the full value of the liens. The portfolio of lien certificates is not sold at a discount. Individual lien certificates will not be sold. This auction will be an auction of a single block of lien certificates. The exact value of the lien portfolio cannot be determined until the day immediately preceding the sale. However, the value of the lien portfolio is anticipated to be several million dollars.
The bidding will be based upon the interest rate to be charged to the block of liens in the auction. The bidding on a portfolio of lien certificates will begin at the statutory maximum interest rate of 18% simple interest annually. Bidding continues downward in not less than quarter point (¼) increments until the lowest interest rate bid is reached.
Form and Timing of Payment of the Purchase Price
All bidders must be prepared to pay not less than 10% of the total value of the tax lien certificate portfolio purchased no later than the day prior to the lien sale. Payment must be made in the form of a cashier or certified check made payable to “[Your Company's Name] OR Franklin County Treasurer Edward Leonard.” Payment of the balance of the portfolio value plus fees must be made via wire transfer. Evidence of the credit to the Treasurer's account must occur by the close of business, 5:00 p.m. EST. On the auction date, successful bidder(s) will be given all necessary details for the wire transfer of the balance of the portfolio purchase price.
Value of the Lien & Life of the Lien
The successful bidder will be purchasing a group or portfolio of tax lien certificates from the Franklin County Treasurer. The purchase price for a group or portfolio of lien certificates is the total of all taxes and administrative fees due for each lien in a portfolio at the time of the sale. The tax amount includes all penalties, interest and special assessments that are due to the County Treasurer at the time of sale. The value of each lien certificate purchased includes an administrative fee around $250 per lien. The bid interest rate of the successful bid applies to the entire amount of each lien, including the administrative fee.
The lien certificates purchased by the successful bidders are valid for a period of three years from the date of purchase. The date of purchase for purposes of the lien certificate expiration date shall be the auction date. If the expiration date falls on a weekend, the tax lien certificate will expire on the next subsequent business day.
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List of Properties
A list of properties to be included in the tax lien certificate sale will be made available in electronic format via email free of charge in August. By emailing Ed_Leonard@franklincountyohio.gov, you may obtain an email listing of properties included in the tax lien certificate sale. A printed form of the listing or an electronic form on disc is available for the cost of the media ($.05 per page or $1 per disc). Such public record requests may be directed to Gary Weimar, Office of Franklin County Treasurer Ed Leonard, 373 S. High Street, 17th floor, Columbus, Ohio 43215, (614) 462-3431.
Owners of prospective tax lien properties may pay the tax due at any time up to 5:00 pm on the day before the auction. Consequently, the Franklin County Treasurer's Office will provide an updated list of properties periodically during the weeks leading up to the auction date. The final updated list of properties will be made available via email on the evening prior to the auction.
Updates to the tax lien properties list will be provided via email to prospective bidders who have submitted such email address information to the Treasurer's Office. Prospective bidders seeking such updates in an alternative format must contact Gary Weimar, Franklin County Treasurer's Office (614) 462-3431 to arrange for any alternative format. Once again, the final updated list of properties will be made available via email on the evening prior to the auction. Finalized list(s) of the properties in tax lien certificate portfolios will be available on the morning of the auction.
Auditor Information
The Office of Franklin County Auditor Joe Testa has an outstanding website that will provide additional information regarding the properties listed. The website can be found at www.franklincountyohio.gov/auditor. To query parcel information, you will need to use the District and Parcel Number, for example, 010-003214-00.
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Recording of the Tax Liens
Lien Certificate Holders will be provided a printed copy of all tax lien certificates purchased. The Treasurer's Office will record the tax certificate in the Office of the Franklin County Recorder.
Tax lien certificate information is noted on the electronic tax records of the Franklin County Treasurer's Office.
Buyers' Right of Redemption
For the period of one year from the date of sale, the property owner has the right to pay the tax certificate lien in full with interest. Pursuant to the Ohio Revised Code, partial payments made by the taxpayer will be retained by the Treasurer's Office and disbursed to the lien certificate holder when payment is made in full.
Calculation of Interest
As mentioned previously, the bid interest rate of the successful bid applies to the entire amount of each lien, including the administrative fee. Interest will be calculated on a simple interest basis with 1/12 of the annual interest applied on the first day of each month.
“Certificate interest period" means, with respect to a tax certificate sold under section 5721.32 of the Revised Code, the period beginning on the date the certificate is purchased and … ending on one of the following dates:
(1) In the case of foreclosure proceedings instituted under section 5721.37 of the
Revised Code, the date the certificate holder submits a payment to the treasurer under division (B) of that section;
(2) In the case of a certificate parcel redeemed under division (A) or (C) of section 5721.38 of the Revised Code, the date the owner of record of the certificate parcel, or any other person entitled to redeem that parcel, pays to the county treasurer or to the certificate holder, as applicable, the full amount determined under that section.
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Foreclosure Process
Foreclosure of the tax lien certificate parcels is governed by Ohio Revised Code § 5721.37 Foreclosure cannot commence until one year from the date of sale of the tax lien certificate. A recent change to the Ohio Revised Code permits the lien holder to secure private counsel to initiate foreclosure or utilize the County Prosecuting Attorney Office to prosecute the foreclosure actions.
The prosecuting attorney may charge the tax lien certificate holder a fee to cover the cost of prosecuting the foreclosure action. The fee may change from year to year. In 2006, the Franklin County Prosecuting Attorney's Office has charged a $3,500 fee for handling the tax lien foreclosure actions.
Purchase of Subsequent Delinquent Taxes (Sub-Buys)
The purchaser of a tax lien certificate shall have the right to purchase the lien on all subsequent delinquent taxes on any parcel for which the purchaser holds a tax lien certificate. The interest rate on a tax certificate for subsequent delinquent taxes is 18% simple interest.
Communications with the Taxpayers
The relationship between the tax lien certificate holder and the Treasurer's Office is very important to the success of this tax lien sale program. It is the Treasurer's goal that this program be executed with the highest standards of professionalism and integrity. Ohio Revised Code Section 5721.43 prohibits tax lien purchasers or their agent(s) from initiating contact with the owner of a tax certificate parcel to encourage or demand payment during the first year following the purchase of the certificate.
Questions
If you have any questions, please contact the Delinquent Tax Division at:
Delinquent Tax Division
373 South High Street, 17th Floor
Columbus OH, 43215
(614)462-3431
Ed_Leonard@franklincountyohio.gov
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Payment Plans
