A CHRISTMAS STORY BY GEORGE LUMLEY

THE CHRISTMAS STORY

Let’s Fix That Tax Sale: 5th in a series by Georg Lumley

It is that time of year to be thankful and giving. A time for sacrifice and charity. Personally, those are things that should be considered incorporated into our daily lives and that of our local government all year; however, that does not seem to be the case with the Tax Sale process, even when it would save the government money which could then be used for other worthy endeavors, like providing food and shelter.

Hopefully you have read my previous myth busting and informative articles about the Tax Sale Process. Although the city is claiming that that no one wants these lots and the city must land bank them and maintain them at a tremendous burden on local resources, this series has shown that people in the neighborhoods do want the properties and are willing to maintain the properties and pay taxes on the properties. Special interest and an idea that the PEOPLE who live in the less affluent neighborhoods are NOT SUITABLE to own an adjacent lot, seem to be getting in the way.

This Christmas story is about a homeowner, Donna, who lives in the Jacobsville neighborhood. Like most homeowners she was not able to take advantage of one of the well-kept tax sale secrets. Some, like County Councilman Ed Bassemeier and a few others, bought tax sale properties adjacent to their properties directly from the County Commissioners for as little as $1.00 before the Auction process. This homeowner, like most, did not know neighboring properties would be sold before the sign appeared just weeks before the auction. Some who inquired early were told by the Commissioner’s office they had to go to the sale and bid. Like most people wanting these lots, Donna ended up at the sale bidding against the world of speculators.

Hundreds of people showed up at the tax sale to buy properties. Many were there to buy the lot or the house next door. Others were looking for bargains or to speculate that if they bought a lot for $100.00 or so they could possibly sell it to the neighboring land owner for $1,000. I have found many such transactions.

Because I was there to learn about the process, I mingled among the crowd and listened closely. A little old lady who looked to be over 70 was working the crowd with the same story over and over. She started down the rows of chairs whispering her situation to a few people at a time and then moving down the row. By the time she reached my small group, remember I was uncomfortably sandwiched between a preacher and a lawyer. I had heard her story several times but I listened intently. The preacher and I assured her we would help. She expressed her thanks and moved on.

Over and over she was telling the bidders that she wanted a particular lot beside her house and she was asking people not to run the price up on her. She hoped to buy the lot for $5. She explained to everyone that would listen that the city had torn down the neighboring house and left the lot to grow weeds, mice and snakes. Because her windows and doors face this lot, she had taken the initiative to level it out, plant grass seed and had maintained it as her yard for 3 years. She explained that the lot was too small to build on and the other neighbor did not want it. It was easy to detect that the lady had limited resources but dearly wanted the lot next to the house she owned.

Her lot was listed as the 140th parcel to sell. This would be after all the houses and most of the lots had sold. As with most auctions, the crowd dwindled as buyers made the specific purchase they came after and then left. I was breathing easier and had a little more room as the attorney to my right was gone and I took advantage of his seat to distance myself from the preacher. When they came to the group of ten properties that included her desired lot, the lady, Donna, and a friend were pretty much sitting in an open space with no other bidders close by.

The auction process used is not simply putting one piece of property up for auction but instead presents ten at one time and then sells “choice” pick of the available properties. The winning bidder can pick their choice or choices of properties from the ten at that price per property. After the winning bidder makes their choice or choices, the “choice” pick of the remaining properties is sold again. Donna was definitely excited when the ten properties that included her pick came up on the screen. There was much anticipation as the properties sold one by one, but she did not bid. There appeared to be a little confusion, but each time her property was not picked she shuffled with excitement. The first pick sold for $1600. Second pick went for $375. Third for $130. Then the price settled at $100 for the next six lots.

With only Donna’s property left on the screen, the auctioneer tried to open the bid at $500. Donna quickly spoke out “5 dollars, 5 dollars, 5 dollars”. Not getting the five hundred, the Auctioneer moved to 250, 100, and finally accepted Donna’s $5 as a starting place. There seemed to be a pause and then the auctioneer accepted a $10 bid. Donna quickly looked around to see who was bidding against her. It was someone in the far corner on the other side of the room who apparently had not gotten the message. Donna was distraught as her friend raised Donna’s arm holding the bidders paddle to indicate Donna would take the next bid. I do not think Donna had a clue of what the bid and ask were, as she just held the paddle up saying: yes, yes, yes.

I doubt that Donna was even aware she had placed the $100 bid price; but, when it went over $100 her friend pulled down Donna’s arm holding the bidder’s number and shared the disappointment that Donna could not afford, on this day, to purchase the lot next to her house. Most likely, only Donna had a love, desire, and true purpose for the lot’s use. Donna was more than willing to own, maintain, and pay taxes on this lot. As Donna wiped the tears from her face, the bidding continued.

With Donna out of the bidding, leaving the bidder in the corner holding the high bid, another bidder toward the center entered the bidding with $115, $135, and then the final bid of $155. Maybe not much money for you, but for people on fixed incomes with possible extended family to care for, it can seem like a fortune, especially during the holidays.

The audience was a little quieter after this particular sale. Most were aware of Donna’s situation and wishing her the best of luck. There was more than a little disappointment felt throughout the room. Most everyone had wanted to see Donna get her lot for $5.00.

As the auctioneer shouted sold and looked to the buyer for his bidder’s number the buyer rose slightly from his seat and shouted in a loud voice across the room to Donna: “See me after the auction and I will sell you that lot for $5.00.” There was a sigh of relief and joy throughout the audience just short of applause. Donna gestured with elation and blew kisses toward the benefactor. The auctioneer said “isn’t that nice” and the auction roared on.

What a great Christmas story that can be repeated time and time again with a little help from our local government. Why not let people, like Donna, know that they could buy this lot for as little as $1 from the County Commissioners, using the same process as County Councilman Ed Bassemeier, rather than go to the auction?

Why is the city proposing to keep all these lots from the people in the neighborhoods by transferring them to a land control organization called the Brownfields? I am sure special interest will be able to get lots they want, but why not let people in the neighborhoods – who want to own these lots, maintain these lots, and pay taxes on these lots – buy these lots at reasonable prices before gifting them to the Brownfields who will decide who meets their standards and mark up the cost?

Why would you have a land bank holding the lots at a cost of up to $1,000 a year when you could sell or give them as Christmas gifts to people in the neighborhoods who would own them, maintain them and pay taxes on them? The money saved could then be used for other worthy causes like providing food and shelter.

Some people just don’t seem to believe in Christmas.