Red lollipops are First Sale Properties, Yellow are Second Sale, and Green are Third Sale.
2021 Gasconade County Tax Sale
Background: (If you're aware of how tax sales work in Missouri, skip this part and go to PVPOA Past Practice section below.)
Most counties in the state of Missouri, with the exception of some of the counties around Kansas City and St. Louis City/County, hold an annual Tax Sale on the same day and the same time on the fourth Monday in August at 10 AM. These Tax Sale auctions are literally held on the "courthouse steps" in most counties. Gasconade got a bit smarter just a few years ago and allowed us to move inside in the air conditioning.
There are three categories of properties in the sale, a First Sale, Second Sale, and Third Sale. First Sale properties are offered after the owner is delinquent for 2 consecutive years. Second Sale after 3 years, and Third Sale after 4 years.
On a first or second sale, you're not purchasing a property, you're purchasing a lien on the property from the collector. Minimum bid on these properties is the amount of back taxes, penalties, and expenses. If you purchase one of these liens, the original owner has the right to buy back the lien for what you paid at the tax sale plus 10% interest. If after a year and your due diligence trying to find the previous owner and giving them ample opportunity to repurchase the lien, you can apply for a deed to the property. If there are any other liens or encumbrances on the property, you will assume them as well. Because of the exposure to other liens and encumbrances, plus the uncertainty of future ownership, most first and second sale properties do not receive bids. In the last 4 years or so that I've been going to the sales, no one has ever bid on a Peaceful Valley property in a first or second sale.
On a third sale, the minimum bid is the amount of back taxes, etc. If you win, you end up with a collector's deed and will own the property, Any liens or encumbrances are null and void, so you will own the property outright.
If no one bids on a third sale property, the Gasconade County Collector accepts sealed bids for a "fourth sale."
PVPOA Past Practice:
We've sent representatives to the sale to advise bidders of any liens we may have against the First and Second Sale properties. With Third Sale properties, if anyone wins a bid, we welcome them to the fold and tell them about Peaceful Valley and provide them with our contact information and membership materials. If no one bids on a Third Sale property, what we've done in the past is make a "Fourth Sale" silent auction bid of between $150-200 per property.
This year, there are 3 properties on the Third Sale. Two are "North Hills" lots in the unimproved area north of Woodson owned by Robyn Ray and Zach Rogers respectively. These are destined to become greenspace. Cathy Hibler's property is is on Lake Shore Dr. but is not a lake side lot. Robyn Ray owes back dues of $1,868, Rogers owes $1,542, and Hibler owes $2,900.
Recommendation:
I recommend we follow past practice of making a silent auction bid on Fourth Sale properties. We've also provided the representative with a "not to exceed" bid value. I need to ask the collector what she expects to get for the properties, which is enough to cover all the advertising costs incurred. I will have that value by the next meeting so we can discuss an upper limit to any bids.
Most counties in the state of Missouri, with the exception of some of the counties around Kansas City and St. Louis City/County, hold an annual Tax Sale on the same day and the same time on the fourth Monday in August at 10 AM. These Tax Sale auctions are literally held on the "courthouse steps" in most counties. Gasconade got a bit smarter just a few years ago and allowed us to move inside in the air conditioning.
There are three categories of properties in the sale, a First Sale, Second Sale, and Third Sale. First Sale properties are offered after the owner is delinquent for 2 consecutive years. Second Sale after 3 years, and Third Sale after 4 years.
On a first or second sale, you're not purchasing a property, you're purchasing a lien on the property from the collector. Minimum bid on these properties is the amount of back taxes, penalties, and expenses. If you purchase one of these liens, the original owner has the right to buy back the lien for what you paid at the tax sale plus 10% interest. If after a year and your due diligence trying to find the previous owner and giving them ample opportunity to repurchase the lien, you can apply for a deed to the property. If there are any other liens or encumbrances on the property, you will assume them as well. Because of the exposure to other liens and encumbrances, plus the uncertainty of future ownership, most first and second sale properties do not receive bids. In the last 4 years or so that I've been going to the sales, no one has ever bid on a Peaceful Valley property in a first or second sale.
On a third sale, the minimum bid is the amount of back taxes, etc. If you win, you end up with a collector's deed and will own the property, Any liens or encumbrances are null and void, so you will own the property outright.
If no one bids on a third sale property, the Gasconade County Collector accepts sealed bids for a "fourth sale."
PVPOA Past Practice:
We've sent representatives to the sale to advise bidders of any liens we may have against the First and Second Sale properties. With Third Sale properties, if anyone wins a bid, we welcome them to the fold and tell them about Peaceful Valley and provide them with our contact information and membership materials. If no one bids on a Third Sale property, what we've done in the past is make a "Fourth Sale" silent auction bid of between $150-200 per property.
This year, there are 3 properties on the Third Sale. Two are "North Hills" lots in the unimproved area north of Woodson owned by Robyn Ray and Zach Rogers respectively. These are destined to become greenspace. Cathy Hibler's property is is on Lake Shore Dr. but is not a lake side lot. Robyn Ray owes back dues of $1,868, Rogers owes $1,542, and Hibler owes $2,900.
Recommendation:
I recommend we follow past practice of making a silent auction bid on Fourth Sale properties. We've also provided the representative with a "not to exceed" bid value. I need to ask the collector what she expects to get for the properties, which is enough to cover all the advertising costs incurred. I will have that value by the next meeting so we can discuss an upper limit to any bids.