Fire District Sales - Posted by K.M.

Posted by Ronald * Starr(in No CA) on September 04, 2003 at 13:42:47:

Perhaps this is what was referred to. It is about liens on properties for municipal organizations, including fire protection districts, related to construction of facilies. The property owners have to pay fees to pay off the bonds of the contruction. The properties can be sold and, if not redeemed, a buyer can get a deed.

Good InvestingRon Starr****

Title 11 COUNTIES AND MUNICIPAL CORPORATIONS.
Title 3 PROVISIONS APPLICABLE TO COUNTIES AND MUNICIPAL CORPORATIONS.
Chapter 88 WATER, SEWER AND FIRE PROTECTION AUTHORITIES.
Section 11-88-51
Levy of assessments for cost of improvement on abutting or benefited property authorized.
If any such improvement be finally ordered and constructed, the board shall have power, after the completion and acceptance thereof, to assess the cost of constructing the said improvement or any part thereof upon or against the property abutting on any street, avenue, alley, highway or other public place so served or drained or against the property drained, served or benefited by such improvement to the extent of the increased value of such property by reason of the special benefits derived from such improvement.
An authority shall have the power to assess for the cost of improvements any lot or lots, parcel or parcels of land purchased by the State of Alabama at any sale for the nonpayment of taxes and where any such assessment is made against such lot or lots, parcel or parcels of land, a subsequent redemption thereof by any person authorized to redeem or sale thereof by the state shall not operate to discharge or in any manner affect the lien of such authority for such assessment, but any redemptioner or purchaser at any sale by the state of any lot or lots, parcel or parcels of land upon which an assessment has been levied, whether prior to or subsequent to a sale to the state for the nonpayment of taxes, shall take the same subject to such assessment.
(Acts 1973, No. 826, p. 1293, §12.)
Section 11-88-53
Preparation of list of property owners proposed to be assessed for improvement.
When any improvement is completed, the chairman or other chief executive officer of the board shall cause to be prepared a roll or list showing the names of the property owners and opposite each name a description of each lot or parcel of land proposed to be assessed for such improvement belonging to such owner or owners and the amount proposed to be assessed against each lot or parcel of land.
(Acts 1973, No. 826, p. 1293, §14.)
Section 11-88-60
Fixing of amount of assessment by board; assessment to constitute lien on property against which levied; reduction or abatement of final assessment by board generally.
At such meeting or any adjournment thereof, the board shall proceed by resolution to fix the amount of the assessment against each lot or tract of land described and included in the said assessment roll, and all such assessments, from the date of such order or resolution, shall be and constitute a lien on the respective lots or parcels of land upon which they are levied superior to all other liens, except those of the state and county for taxes.
The board shall have no power to reduce or abate an assessment made for an improvement after such assessment shall have been made final, unless an appeal shall have been taken from such assessment within the time prescribed by law, except as provided in Section 11-88-62, but this provision shall not affect the power of the board to split an assessment between two or more parties as provided by law.
(Acts 1973, No. 826, p. 1293, §22.)

Section 11-88-63
Transfer and assignment of liens by authorities.
An authority may transfer and assign such liens to the contractor or contractors who made the said improvement or improvements or to any other person.
(Acts 1973, No. 826, p. 1293, §24.)

Section 11-88-64
Enforcement of liens by circuit courts; amounts recovered in civil actions to enforce liens.
In addition to the method provided in this article for the collection of such assessments, the circuit court may enforce the said liens and, in all civil actions which may be brought to enforce the said liens, either by the authority or by its assigns, the complainant shall recover the amount of such assessment with interest thereon, together with the cost of such proceedings.
(Acts 1973, No. 826, p. 1293, §25.)
Section 11-88-65
Enforcement of lien on property for state, county, etc., taxes not to discharge or affect lien of authority for assessment; duration of liens.
The enforcement by the state, county, city or town of its lien for taxes on any lot upon which has been levied an assessment for any improvement shall not operate to discharge or in any manner affect the lien of the authority for the assessment, but any purchaser at any tax sale by the state, county, city or town of any lots or parcels of land upon which an assessment has been levied shall take them subject to such assessment.
All liens for improvements shall continue until they are paid or extinguished or until the expiration of 20 years from the date of default in payment of the assessment or from the date when there was a due recognition of the indebtedness after default, after which time the enforcement of the lien shall be barred and the indebtedness conclusively presumed to have been paid.
(Acts 1973, No. 826, p. 1293, §26.)
Section 11-88-66
Effect of enforcement of assessment lien upon other improvement assessment liens on property.
The enforcement by an authority of its lien for an assessment levied for one improvement by the sale of property shall not operate to discharge or in any way affect the lien of any other assessment for a different improvement on the same property, but the purchaser at such sale shall take the property subject to the lien of all other assessments and the right of the authority to enforce the same.
(Acts 1973, No. 826, p. 1293, §27.)
o
§ Section 11-88-67 Appeal from assessments to circuit court ? Authorization and procedure generally.
§ Section 11-88-68 Appeal from assessments to circuit court ? Establishment of amount of appeal bond and approval of sureties thereon; conditions of bond.
§ Section 11-88-69 Appeal from assessments to circuit court ? Entry of appeal on trial docket.
§ Section 11-88-70 Appeal from assessments to circuit court ? Transmittal to circuit court of transcript of proceedings of authority as to assessment; contents thereof.
§ Section 11-88-71 Appeal from assessments to circuit court ? Transcript deemed prima facie evidence of correctness of assessment, etc.
§ Section 11-88-72 Appeal from assessments to circuit court ? Conduct of trial generally; when costs of appeal and trial adjudged against authority.
§ Section 11-88-73 Appeal from assessments to circuit court ? Entry of judgment for amount properly chargeable against land where, assessment defective; payment of costs.
§ Section 11-88-74 Appeal from judgment of circuit court to Supreme Court ? By property owner ? Authorization and procedure generally.
§ Section 11-88-75 Appeal from judgment of circuit court to Supreme Court ? By property owner ? Appeal to be heard on record.
§ Section 11-88-76 Appeal from judgment of circuit court to Supreme Court ? By property owner ? Addition by Supreme Court of interest and damages to judgment of circuit court upon affirmance.
§ Section 11-88-77 Appeal from judgment of circuit court to Supreme Court ? By authority.
§ Section 11-88-78 Issuance of execution on appeal bond and sale of property assessed when final judgment entered in favor of authority.
Section 11-88-78
Issuance of execution on appeal bond and sale of property assessed when final judgment entered in favor of authority.
In the event the final judgment is entered in favor of the authority, execution may be issued thereon against the principal and sureties on the appeal bond, unless the amount of the judgment is paid within 30 days from the date of such judgment, and the court shall, by further order, direct that the property assessed be sold to satisfy such judgment. Nothing contained in this article shall operate to release or discharge the lien on such property, unless the assessment is fully paid.
(Acts 1973, No. 826, p. 1293, §39.)
§ Section 11-88-79 Manner of payment of assessments generally.
Section 11-88-80 Entire assessment due and payable upon default in payment of assessment or installments thereof; advertisement and sale of property assessed for improvement generally. Section 11-88-80
Entire assessment due and payable upon default in payment of assessment or installments thereof; advertisement and sale of property assessed for improvement generally.
If the property owner who has not elected to pay in installments fails to pay his assessment within 30 days or, having elected to pay in installments, fails to pay the first installment in 30 days from the date of the assessment or makes default in the payment of any annual installment or the interest thereon, the whole of such assessment shall immediately become due and payable.
The officer designated by the authority to collect such assessments shall proceed to sell the property against which the assessment is made to the highest bidder for cash, but he shall first give notice by publication once a week for three consecutive weeks in some newspaper published in the county in which the property is located and of general circulation therein of the date and time of such sale and the purpose for which the same is made, together with a description of the property to be sold. If the said officer shall fail to advertise and sell any property on which the said payments or installments are past due, any user of the improvement or any holder of bonds of the series affected by the said failure shall have the right to apply to any court of competent jurisdiction for a writ of mandamus requiring the said official to take such action and the said court shall, on proof, issue and enforce such writ.
(Acts 1973, No. 826, p. 1293, §41.)
§
§ Section 11-88-81 Defaulting property owner may pay assessment, etc., prior to sale.
§ Section 11-88-82 Cost of advertisement and sale to constitute charge against property to be sold.
Section 11-88-83 Officer making sale to execute deed to purchaser; rights, title, etc., conveyed to purchaser by deed; disposition of surplus proceeds from sale; purchase of property by board. Section 11-88-83
Officer making sale to execute deed to purchaser; rights, title, etc., conveyed to purchaser by deed; disposition of surplus proceeds from sale; purchase of property by board.
The officer making such sale shall execute a deed to the purchaser, which shall convey all the right, title and interest which the party against whose property the assessment was made had or held in the said property at the date of making such assessment or on the date of making such sale.
Any surplus arising from the said sale shall be paid to the treasurer of the authority to be kept as a separate fund by the treasurer for the owner upon the responsibility of his bond.
The board may, by its agents, purchase real estate sold as provided under this article and, in the event of such purchase, the deed for the same shall be made to the authority.
(Acts 1973, No. 826, p. 1293, §44.)

§ Section 11-88-84 Effect of mistakes in advertisement or sale; supplementary proceedings for correction of errors; enforcement of lien by purchaser.
Section 11-88-85 Redemption of property after sale ? Authorization and procedure generally. Section 11-88-85
Redemption of property after sale ? Authorization and procedure generally.
Any real property sold for the satisfaction of an assessment lien imposed thereon by the board may be redeemed by the former owner or his assigns or other person authorized to redeem property sold for taxes by the State of Alabama, within two years from the date of such sale, by paying to the purchaser at such sale or to any person deriving title under such purchaser or to the treasurer of the authority for such purchaser or person deriving title under such purchaser the amount of the purchase price for which the property was sold at such sale plus an amount equal to interest on such purchase price from the date of such sale to the date of redemption at the rate of eight percent per annum plus a fee of $2.00 to cover the expense of a conveyance. If the redemption is made from the authority, the payment may be made upon such terms, including installment payments, as the board may approve.
(Acts 1973, No. 826, p. 1293, §45.)
Section 11-88-86 Redemption of property after sale ? Extension of redemption period. Section 11-88-86
Redemption of property after sale ? Extension of redemption period.
The fixed two-year period of redemption allowed by Section 11-88-85 for the redemption of any property sold for the satisfaction of any such lien shall be extended to a date 60 days after the date of certificate of warning to redeem provided for in Section 11-88-87, but in no event for a longer period than six years from the date of such sale.
(Acts 1973, No. 826, p. 1293, §46.)
Section 11-88-87 Redemption of property after sale ? Application for entry in record of deeds of certificate of warning to redeem; form of certificate. Section 11-88-87
Redemption of property after sale ? Application for entry in record of deeds of certificate of warning to redeem; form of certificate.
At any time after an improvement assessment sale deed has been recorded in the office of the probate judge and after expiration of the fixed two-year period of redemption allowed by Section 11-88-85, any person may apply to such probate judge for entry in the record of deeds of a certificate of warning to redeem in substantially the following form: “I hereby certify that on or prior to the date of this certificate I mailed a compared copy of the deed recorded in Deed Book _____ at Page _____, together with notice that the same is there recorded, and a warning to redeem, to each of the one or more persons other than the grantee in said deed, to whom the property therein described was last finally assessed for ad valorem taxation, at the address of each such person as shown by said ad valorem tax assessment records. This _____ day of ___, 19, Probate Judge.”
(Acts 1973, No. 826, p. 1293, §47.)
Section 11-88-88 Redemption of property after sale ? Applicant to deliver copies of improvement assessment sale deed to probate judge; examination, etc., of deeds, etc., by probate judge; mailing of copies of deed and warning to redeem to persons last assessed for ad valorem taxation on property; entry in record of deeds of certificate of warning by probate judge; termination of redemption rights.
Section 11-88-88
Redemption of property after sale ? Applicant to deliver copies of improvement assessment sale deed to probate judge; examination, etc., of deeds, etc., by probate judge; mailing of copies of deed and warning to redeem to persons last assessed for ad valorem taxation on property; entry in record of deeds of certificate of warning by probate judge; termination of redemption rights.
At the time of application for entry of such certificate of warning to redeem, the applicant shall deliver to the probate judge three correct copies of the said deed with a notation thereon of the deed book and page where recorded and shall pay to the said probate judge a fee of $1.00. The said copies of the deed need not include any certificate of acknowledgment. It shall thereupon be the duty of the said probate judge to promptly compare the said copies with the record of such deed and, if such copies be found to be correct copies of such record, it shall be the further duty of such probate judge to ascertain from the ad valorem tax assessment records of his county the name of the person or persons other than the grantee in the said deed to whom the property described in the said deed was last finally assessed for ad valorem taxation, together with the address of each such person as shown by the said tax assessment records, and thereupon to promptly mail to each such person at such address one of the foresaid compared copies of said deed, together with an attached warning to redeem in substantially the following form: “Take notice that there is recorded in my office in Deed Book _____ at page _____ a deed of which the attached is a correct copy. You are warned that unless you, or those claiming under you, take prompt steps to redeem from those claiming under the said deed, all rights of redemption may be lost. This _____ day of _____, 19 __ Probate Judge, _____ County, Alabama.”
Promptly upon or after mailing such notice or notices and compared copy or copies of deed, it shall be the duty of the said probate judge to enter upon the record of deeds a certificate of warning substantially as prescribed by Section 11-88-87 and to sign such certificate and to date the same evenly with the date of entry. At the expiration of 60 days after the date of such certificate, all rights to redeem from the sale shown by such deed shall cease and determine.
(Acts 1973, No. 826, p. 1293, §48.)

§ Section 11-88-89 Redemption of property after sale ? Performance of duties of probate judge; liability of probate judge for errors or mistakes in performance of duties.
§ Section 11-88-90 Redemption of property after sale ? Redemption during extended redemption period.

Fire District Sales - Posted by K.M.

Posted by K.M. on September 03, 2003 at 13:11:23:

Anybody ever heard of this type of sale.I’ve been told that if someone doesn’t pay their fire district dues , then someone can obtain their property. Any comments would be appreciated.

Here is the URL for my research - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on September 04, 2003 at 13:48:51:

K. M.–(AL)----------------

Here is the URL for my research on the topic of the fire distrcit liens.

http://www.creonline.com/wwwboard/messages/87514.html

It looks like the sort of thing an attorney would get into. You know, obscure little corner of the law. Potential high return.

This is sort of thing one might get into in your state. It would require studying all the law, including the anotations, at the law library, then calling around to the governmental agencies doing the sales to find find out if they have any.

One shortcut would be to find some such sales and see what law firms are involved inthem. They might work on many such sales and have informatoin about upcoming sales.

Note that the law applies to other than fire district sales. So, there may be quite a few sales over the course of a year. All advertised in papers legal notices, which few people read.

Good InvestingRon Starr

Re: Fire District Sales - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on September 03, 2003 at 15:07:22:

K. M.----------------

I’ve never heard of this. But that is not surprising. There are lots of different things that happen in different states.

It sounds like a delinquent property tax lien type situation. In general, in many states, such liens are sold at public auctions. If you buy the lien and later, if the delinquent lien is not paid, you can foreclose the lien and, if the lien is still unpaid, end up with the property. In general, the number of people who lose good properties because of small assessments is exceedingly small. People may be angry about some assessment or lien, but they reluctantly pay up when they face the reality of losing their realty.

In some states there are no tax liens. In those states there may just be a tax auction starting at the delinquent amount. The winning bidder would receive a deed to the property.

I have noticed in some states that the tax lien sales lists have both ad valorum taxes and taxes for utility bills, such as water and sewer bills. Perhaps that is parallel to what you are mentioning.

Could you say what state you are in? If you will, I’ll do some research on the topic and post back to you on what I find. I invest in tax sales and tax liens. I have a background in research so can probably dig up some worthwhile information in short order.

Good investingRon Starr**

Re: Fire District Sales - Posted by Marcos

Posted by Marcos on September 03, 2003 at 13:23:57:

I haven’t heard of it personally. But, if you want better advice, you might want to list where you’re located.

The next best thing is to actually talk to a real estate attorney. Ask someone local about this. They can tell you the ins and outs.

Marcos