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
Posts
3 comments:
I am trying now to file a complaint with the attorney gereral concerning Jordan Tax Services. My problem is specifically this-I made an agrmt/signed contract with the City of Pittsburgh Treasurer for city/school taxes. I was up to date on my payment agreement, and I paid my 2010 city/sch tax already. I make my checks out to:Treasurer, City of Pittsburgh City/School Real Estate Tax--Jordan is cashing these checks and applying them to other accounts-DESPITE THE FACT that I am not writing my checks to Jordan--I am making them out to City Of PGH--Jordan Tax is deciding how THEY want to apply the $$--which is not only illegal, but also puts me in arrears on my agreement--MY SIGNED CONTRACT with the city of Pittsburgh.
What this does is exponential in how it affects me. It is throwing off not only my ability to keep accurate records of which place I owe how much $$ to--but it is causing some bills to be paid more $$-because Jordan's records are not always accurate. For instance-Jordan decided to apply my city tax check to a county tax bill-a bill I had just paid in full to the county--My agreement with the city now appears in default-because Jordan Tax refuses to correct their illegality-which as a result can allow them to sheriff sale my home--ALSO--As SOON as my contract with the City of Pittsburgh becomes defaulted--Jordan can add their INSANE charges of a minimum of $800 plus additional fees--but Jordan is ILLEGALLY cashing checks not made out to them, and applying them to wherever they feel like. I have had this issue with Jordan Tax before. These practices with them are NOT new.
Fact is, no matter who I talk to at Jordan, they refuse to acknowledge that they need to correct their error. They just tell me they are a debt collection company, and that they are allowed to apply any payments they receive from me as they see fit--per their contracts with both the city and the county.
Jordan states per their records they notified me--I asked for proof-they said it was types in their computer --so it must be so--Never provided proof of mailing or anything.
When a person is in debt and trying to dig out, we do not have time nor $$ to keep fighting Jordan Tax Services, nor the huge Law firm that represents them. They apparently are way above the law, and their connections are deeply political as well. I work 6 days per week, can not afford to take off work. I cannot afford to pay an attorney to help me with their illegal practices. They refuse to honor the contract I signed, and have paid on time--Jordan will not fix their errors in applying the $$ to accounts I do not have with them. Help!!! There must be others In the City of Pittsburgh--The county of Allegheny--and we need to band together to fight their illegal practices. We need to get this onto the news--I believe we aare not alone. They have caused me much undue hardship, and have charged me exhorbinant fees--I've been down this road with them before--Never make out a check to Jordan Tax--Make out the check to the actual entity you are paying. Write in the memo what account it is for, month and date--a check is a legal document. They will do whatever they want with it--but you will have your cancelled checks as proof of where the $$ was supposed to go. I am hoping the attorney Generals office can help, due to the FCEUA. I want to also get the word out to as many as possible.
Last year, my residence was almost auctioned off--I never received ANY notice by mail or otherwise that I was even liened by Jordan-Did not even know until the sheriff showed up at my door
The posting by Mark Rauterkus, as well as the referenced news story by Jessica Trunbill at Valley News Dispatch, is correct in its statement that the New Kensington-Arnold School is selling their tax claims and that “[t]here is no change in the process for the taxpayers as taxes will continue to be collected by the Westmoreland Tax Claim Bureau.”
However, discussions pertaining to the tax collections process are extraneous and unecessary simply because there will be absolutely no change to the tax collections process as a result of the sale. If there are any continued concerns about the collections process, I would direct your inquiries to the Westmoreland County Tax Claim Bureau in regards to the Leechburg Area School District. Leechberg Area School District began annually selling their tax claims several years ago and they continue to do so through the present. Westmoreland County Tax Claim Bureau collects the taxes for one of the townships in Leechburg Area School District, and they can confirm that there has not been any changes to the collections process as a result of Leechberg Area School District’s annual tax claims sales.
While there have been changes in the tax collections process implemented by some school districts in Pennsylvania, Public Asset Management Inc., and all professionals connected to Public Asset Management Inc., have never been, and never will be, involved in the collection of real estate taxes. The program operated by Public Asset Management Inc. has the flexibility to allow a county additional time for the collection of delinquent taxes if the county itself decides to implement any alternative collection procedures permitted under Pennsylvania law.
I am eager to find some information on a class action lawsuit against Jordan Tax Services.
They contacted me with a 30 day notice that I did not pay a bill 4 years ago. They never cached the check I sent and never informed me of missing any payments until 4 years later. I disputed the charges which they ignored, instead they filed a court case and communicated to me months later that they are taking me to court, with an entirely different face value they stated in the first letter. They are demanding extra fees that I know they never spent on my case.
Two more people I know are dealing with very costly demands from the same company which details are even more horrifying than mine. How many more there is? How long do we have to put up with the unprofessional business practices of this company?
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