The Valley News Dispatch news story below is self-explanatory. But note, there is no mention of how the collection process would change for so called 'delinquent' homeowners. The question that needs to be asked is: Will Public Asset Managment be free to add fees to the 'delinquent' homeowners back taxes, penaties and interest. I don't know how that firm operates, but have read in other publications that another firm immediately adds $1,000 to any back taxes for each property. Which of course makes it even more unlikely the homeowner can dig themselves out of the hole...which means more sheriff sales.
Also, in the past, those homes 'delinquent' the longest were the ones that would be sold at sheriff sale first. In some areas I've read about in other newspapers, how long the home is 'delinquent' no longer determines when a property will be sold at sheriff sale. Vultures looking to get rich off someone else's misery can approach some of these collection agencies and urge them to put a more 'desirable or marketable' property up for sale before those that have been 'delinquent' longer. So the vulture can cherry pick properties. That way the collection company gets their money faster, as does the school district, county and municipal government. But is that fair to someone trying to come up with the money to dig themselves out of this alleged debt when their property is rushed ahead of other properties 'delinquent' longer, but less desirable...or in other words will bring the best returns when the vultures resell it.
The rich get richer...and the poor get evicted.
AFTER READING THE VALLEY NEWS DISPATCH STORY, BE SURE TO READ THE NOTE BELOW FROM A TAXPAYER WHO HAS HAD TROUBLE WITH JORDAN TAX SERVICE...ANOTHER TAX COLLECTION FIRM.
New Kensington-Arnold School District sells back tax claims to agency
By Jessica TurnbullVALLEY NEWS DISPATCH Friday, January 29, 2010
The New Kensington-Arnold School District will get a shot in the arm with an influx of tax revenue after it agreed to sell its claims to back taxes.
The district will receive uncollected real estate taxes upfront — about $1.43 million — from nonprofit Public Asset Management.
There is no change in the process for the taxpayers as taxes will continue to be collected by the Westmoreland Tax Claim Bureau.
"This will be an upfront injection of cash that will be added to the fund balance," said Jeffrey McVey, business manager.
In exchange for the cash influx, the district sold its tax claims for all uncollected taxes, McVey said. That means uncollected taxes will be sent by the tax bureau to Public Asset Management instead of the district, he said.
The board voted, 8-0, in favor of the agreement. Board member Eric Doutt was absent.
A transactional cost of 5 percent — estimated at $88,200 — is financed through the lender, he said. Current delinquent taxes are valued at $850,000 while delinquent taxes for the previous three years are estimated at $830,000.
"We will be able to budget our revenue more closely each year because we will have a better idea of what our returns will be," McVey said.
The district will benefit from the initial influx of cash and also will not need to deplete cash reserves in the future, he said. McVey said he spoke with business managers at other districts such as Mercer, Oil City and Clairton who are using Public Asset Management in a similar agreement.
"The only negative one of those managers said was that once you start, it is something you have to continue with," McVey said.
Terminating the agreement before the loan is paid means the district would have to repurchase the uncollected tax claims and the steady cash stream would be ended, he said.
The district will receive uncollected real estate taxes upfront — about $1.43 million — from nonprofit Public Asset Management.
There is no change in the process for the taxpayers as taxes will continue to be collected by the Westmoreland Tax Claim Bureau.
"This will be an upfront injection of cash that will be added to the fund balance," said Jeffrey McVey, business manager.
In exchange for the cash influx, the district sold its tax claims for all uncollected taxes, McVey said. That means uncollected taxes will be sent by the tax bureau to Public Asset Management instead of the district, he said.
The board voted, 8-0, in favor of the agreement. Board member Eric Doutt was absent.
A transactional cost of 5 percent — estimated at $88,200 — is financed through the lender, he said. Current delinquent taxes are valued at $850,000 while delinquent taxes for the previous three years are estimated at $830,000.
"We will be able to budget our revenue more closely each year because we will have a better idea of what our returns will be," McVey said.
The district will benefit from the initial influx of cash and also will not need to deplete cash reserves in the future, he said. McVey said he spoke with business managers at other districts such as Mercer, Oil City and Clairton who are using Public Asset Management in a similar agreement.
"The only negative one of those managers said was that once you start, it is something you have to continue with," McVey said.
Terminating the agreement before the loan is paid means the district would have to repurchase the uncollected tax claims and the steady cash stream would be ended, he said.
Hi Bob:
Here is some very important news for you and the rest of the Undercover/Spedunkie readers...
I had owed the City of Pittsburgh some back taxes due to my surgeries and not able to return to work as I had hoped...
I had gotten a Notice that my house was to be Sherif sale (posted) unless I had made arrangements for making payments to the City...I went to the City Tax Offices and made payment arrangements and made sure I made these payments along with the current property taxes (2009)...At times I even made payments that exceeded the payment amounts agreed upon...Now, I had called the City Tax Office today to ask why I haven't received the January Billing Statement for the past taxes...I was told that ALL back taxes to the City and payment agreements have been turned over to JORDAN TAX SERVICE as voted upon by the City Council!!!!
I have recently filed a law suit against Jordan Tax Services for not give me accurate credit for a back tax year (surgery)...I had paid the tax of to Jordan in 3 checks totalling 285.00..The tax bill was for 284.00...I sent in checks for 100.00, 100.00 and 85.00...Jordan credited the checks as follows 100.00, 74.00, and 84.00...I sent a letter showing the check copies and Jordan never corrected the problem...Next Jordan said they were going to Lien the property...I went to the local Magistrates office and filed suit + an amount to pay off the back taxes to the city...
If you know of people that are having any problems with Jordan Tax Service and have kept records of their payments and still have problems, people need to take Jordan Tax Services to court..Small Claims or their local Magistrates Office and ask for damages, pain, suffering and any type of legal expenses they have acrued...Otherwise I recommend a Class Action Law Suit....
One other note is to File a Complaint with the Pennsylvania Attorney Generals Office, in so doing one must send to them copies of all payments (canceled checks (front and back)) along with the form back to the Attorney Generals Office...Their is a local office here in Pittsburgh.. Bert
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