Checking with code enforcement before getting a tax auction home

There’s a good deal of background research that one must do when trying to get titles to property at the county tax auction. Besides the obvious–first taking a drive-by, and checking it with the city map–another piece of research that doesn’t occur to a lot of people is to check in with the county or city code enforcement department.

Here’s the dilemma. Often, there is no communication between code enforcement, and the county treasurer who holds the auction. So, you bid on a house that is vacant, with the idea that you’ll win the bid, wait out your year’s redemption period, and then have a house to rehab. But during the year redemption period, you are of course, not allowed to enter the house or do any repairs. Meanwhile, the grass is growing, the paint is peeling, and vandals are stripping off the aluminum siding. Code enforcement notices the condition, and sends out notices to the owner of record, who is unresponsive. You, as the buyer of the tax lien, don’t get the notice, so you don’t have a clue that Code Enforcement has an issue with the property. It is entirely possible that Code Enforcement may even issue an order to demolish.

Does it make sense? Absolutely not. Does it happen? Once in a while. The idea of the tax auction is that the treasurer wants to get the properties back into a tax-producing status. It would make sense that there would be some communication betwen the treasurer and Code Enforcement, so that you, as owner of the tax lien, would know what to expect. Now Code Enforcement will come along, having issues and getting no response from the owner of record, will see the property as being vacant, abandoned, and in need of repair, and may issue that demolish order, without ever putting you in the loop, or even realizing that you are waiting in the wings to rehab it.

Political reform at the local level being notoriously difficult, there’s not much we can do about this lack of communication. Never expect a government agency to be efficient! Let’s just assume they’re all morons, and be proactive.

Here’s my advice. When you get that tax lien, immediately give a call to the Code Enforcement department and tell them who you are. They typically don’t have a clue that the home they’re targeting has been sold at the tax auction, so it’s up to you to tell them. Make sure they have your name and contact information, and give them the addresses of the liens you purchased. The Code Enforcement officers are typically reasonable people who will work with you on deadlines, and if they know that you’re in the background waiting to rehab, they will keep you in the loop, and once you’ve explained the situation, will be willing to wait until you’re legally allowed to get on with your work. But you can’t expect their cooperation if they don’t know you exist–so be proactive and give them a call.