Paterson auctioning off tax liens to raise $1.5 million
By Jayed Rahman
Published: November 27, 2018
The city is holding two tax lien sales on Thursday to raise $1.5 to help close its budget shortfall.
297 tax debt certificates will be put up for an auction at City Hall at 10 a.m.
The first list of 74 liens have been discounted by 75-percent of assessed value. Bids start at 25-percent of assessed value, according to city records.
Some of the deeply discounted tax debt date back to 1998.
For example, 207 Governor Street is assessed at $21,500 and will start at a $5,375 minimum bid.
The property owes $124,512 in taxes.
“It has not sold in 20 years,” said finance director Marge Cherone.
The second list of 223 liens have been discounted by 10-percent of redemption value. For example, 171 Slater Street owes $4,206 in taxes. Bids for lien against this property starts at $3,785 or 90-percent of redemption amount, according to city records.
Max Spann Real Estate & Auction Company will conduct the auction. The firm will collect 10-percent commission, according to city records. Buyer pays the commission.
Buyers will be able to file for foreclosure in six months, said Cherone.
The sale includes tax liens against the old Barbour Estate in the Eastside section. William McKoy, 3rd Ward councilman, suggested the city foreclose on the property and take ownership.
“That property has been abandoned for a long time. It’s in the gateway to the city and needs some attention,” said McKoy. He suggested public works clean up the property and place a new lien against it.
Barbour Estate owes $61,770 in taxes, according to city records. Bid for tax debt certificate starts at $55,593.
The 297 properties owe $6.86 million in taxes.
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