Tax Sale Maintenance

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Description

A tax sale is the auctioned sale of a delinquent property. Typically, a property sale is advertised for a certain length of time. Then the sale goes to an auction. A buyer bids on the tax amount plus the amount of interest during the sale. When the bid is awarded, the buyer pays all delinquent taxes plus assorted fees or costs and interest, and receives a certificate stating they hold the lien against that year's taxes. When the property owner pays (redeems) the delinquent tax, the buyer recovers the money they paid plus the interest amount that they bid.

There are two types of tax sale, tax deed sale and tax lien sale. Once a property is advertised for tax sale, one of these methods is used for the sale. Some jurisdictions offer a redemption period, where the former owner has a certain amount of time to reclaim the property by repaying the amount bid at auction plus interest and penalty. Once the redemption period is over, the lien holder may initiate foreclosure proceedings.

The Aumentum Tax Sale module allows you to set up and maintain tax sales through the Tax Sale Maintenance task.

Steps

Search for Tax Sales - Search for tax sales to maintain.
Maintain Tax Sales - Enter or edit the tax sale information and the bills associated with the tax sale.
- Ineligible Buyers - Identify Buyers who are ineligible to bid at Tax Sale.
- Assign Items to Agency - Select tax sale items to assign to an Agency buyer.
- Mass Entry Keyer - Mass enter buyer numbers and amounts for a tax sale as an additional Keyer at the sale.
- Sale Reconciliation Report - Print a report detailing either all entries or only errors from all mass entry keyers.
Mass Enter Tax Sale Information - Mass enter buyer numbers and amounts for a tax sale.
Maintain Current Tax Amount - Pull subsequent year's taxes and penalties into the Tax Sale to calculate the minimum bid. The current year tax is also included in the sale lien. This screen is intended for South Carolina counties and may not be available in your jurisdiction.

Tips

You can import buyer payment files received from third-parties conducting your Tax Sale. See Tax Sale Buyer Payment Import File Configuration and Tax Sale Buyer Payment Import.

In Beaufort County, all properties whose taxes are not paid for the year by August 31 of the following year are advertised and sold for nonpayment of taxes. Before a property is sold for taxes, three tax notices are mailed. The property may also be physically levied. The redemption period for these properties is usually 12 months.

The Tax Sale Participation flag is automatically applied during Final Advertising and is automatically removed if the tax sale item is removed from the Tax Sale (is no longer Participating).

Prerequisites

Accounts Receivable

AR Penalty Late Payment Rules must be set up.
AR Payment Rule Groups must be set up.
AR Penalty/Interest Flag Rules must be set up if you will be using these rules.

Cashiering

Cashiering Flag Payment Rules must be set up.

Configuration Module

A Tax Sale Calendar must be set up. See Tax Sale Calendar Setup.

User Maintenance and Security > User - User must have security clearance in order to edit the Records legal party information: Non-menu items for Records module.

To add a new legal party on Search for Buyer - Add View, Create and Modify rights to 'New Legal Party' task. Add 'Inherited rights'.
To edit existing legal parties on Maintain Buyer - Add View, Create and Modify rights to 'EditLegalParty' task. Add 'Inherited rights'.

Records

Legal Party Maintenance - The buyers are legal parties. You can set up the legal parties in Aumentum Records prior to doing Buyer Maintenance, or use the Add option of the search. The name, address, communication information, and role of buyer are all set up and maintained through Records functionality, which you can also access directly on the Maintain Buyer screen.

NOTE: The legal party must have a federal id number or social security number, set up in the Identification Number panel of Maintain Legal Party, prior to saving the buyer withholding information.

Dependencies

Withholding is required for the interest earnings of the buyer.
Withholding is reported to the IRS on a 1099 form.