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The second-day story, with your help. Call Gazette reporter Adam Belz at (319) 398-8273 or e-mail him: adam.belz@gazcomm.com

Round 2 coming for tax sale

The Linn County Treasurer’s Office will hold a second tax sale Aug. 10, because a third of the properties up for sale in June didn’t sell.

Usually everything goes in the first tax sale, Treasurer Mike Stevenson said. This year, about 500 properties went unsold, out of a total of roughly 1,800.

Adair Asset Management, a company that often buys hundreds of properties in tax sales across Iowa, pulled out this year — in Linn County and in other counties. “Their funding fell through,” Stevenson said.

Also, some buyers weren’t interested in flooded properties.

“There’s a lot of flood properties that didn’t get bought,” he said.

Tax sales in Iowa go back at least to 1851. Though the rules vary from county to county and have changed over the years, the annual events attract considerable attention from local and out-of-state investors.

In Linn County, buyers pay $100 for a bidding number. The number goes into a computer lottery, and whoever holds the number can buy a property every time the number is called.
After the winning bidders pay the back taxes on a property, they get a lien on it and collect interest on their investment until the actual owner pays back the tax and interest.

If the property owner doesn’t pay back the bidder in 21 months, the bidder gets the property.

More often, though, the bidder turns a profit by collecting interest on the lien, which is the legal claim the buyer holds on the property until his or her investment is repaid. Iowa law requires the owner to pay the lienholder 2 percent interest per month, or 24 percent annually.

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Filed under: County Government, , , , , ,

One Response

  1. anonymous guy says:

    is this posted anywhere on the linn county website ? also where so i get a list of the property’s ? linn county’s website is a mess.

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