By DEBRA HAIGHT
BCR Correspondent
ST. JOSEPH – With Berrien County’s 2020 tax foreclosure land auction just days away, questions are being raised as to how it’s being run this year. Due to the COVID-19 pandemic, the county has farmed out the running of the auction to a third-party vendor who is doing it online.
Berrien County Treasurer Shelly Weich reported in August that the
county had decided to contract with a company called Tax-sale.info to conduct the online auction on Saturday, Sept. 26. The company is handling tax foreclosure sales for about 80 percent of Michigan counties.
The pandemic led Gov. Gretchen Whitmer to delay the deadline to pay taxes to avoid foreclosure of properties around the state from March 31 to the end of May initially and finally to the end of June. Auctions of such properties normally take place in early May.
Weich reported last month that 190 properties are on the foreclosure list this year. Of that number, 22 are occupied, 19 unoccupied and 149 are lots. She said bidding can begin up to 30 days prior to the auction and will run live online from 10 a.m. to 7 p.m. on Sept. 26.
People must put down $1,000 credit to pre-authorize from the auction with their credit card not charged until the day of the auction. People will be informed by email if they have the winning bid and must pay the amount owed within five business days. If they do not, the $1,000 will not be returned, she said.
She noted that the winning bidder must pay the 2020 summer taxes as well as other expenses owed before they can obtain a property.
It is the $1,000 deposit that had two Berrien County Commissioners concerned last week.
County Commissioners Mamie Yarbrough and Don Meeks both said they had people bring concerns to them about the amount of the deposit. They represent the Benton Harbor area on the commission.
“I often have people asking me when it is,” Yarbrough said. “Yesterday I had calls from people who are concerned. Their number one concern is the $1,000 deposit. People don’t have a charge card with $1,000 on it. Normally it was $500 deposit that would be given back.”
Weich said her office had received calls too. She noted that the $1,000 is what is required by the third party company. She said she wasn’t sure what the company’s policy is if people don’t have a credit card. She said the county required a $500 deposit when they did it and had some people come in with cash.
“People are saying that this is a way to keep them out of bidding on a property,” Yarbrough said. “80 percent of the properties are in BH and this is way to keep them out of the sale. There is a concern of being kept out.”
“I understand the concern, I don’t want to discourage anyone from taking part in the auction,” Weich said. “I will talk to vendor to see if there is any way to handle this. This is all new, there will be a learning curve for all of us. We held out as long as could before going with this company.”
Yarbrough and Meeks said the Nov. 3 auction date for the properties left over from the Sept. 26 date is also concerning since it’s Election Day this year. They said it’s not only Benton Harbor area residents with concerns, but people from other parts of the county.
“I see a big deterrent with the $1,000, it’s like blocking people out in the community,” Meeks said. “With COVID-19, money is not flowing like it was. I don’t see why we have to have this company do a second auction. We need to have it on a different day and not do it just because the auction company wants to have it done on that day.”
“Don’t we have another option for the second sale so everybody can be in on the process,” he added. “I have people call me about this auction, this is a concern to our constituents. The feel like they’re being excluded.”
Weich said the county has had no say in what date the second auction will be held. “It’s up to the vendor,” she said. “I think there will be sufficient time during the day to get to polls or people can vote absentee.”
She reiterated that the county was under time constraints this year with everything going on with the pandemic and had to make a decision quickly. “Other counties use this vendor and have been very happy with them,” she said.
“I appreciate your concern and comments,” she added. “My intent is not to exclude anyone. We can look at other options next year but this year there was a time constraint.”
She noted that a majority of vacant lots will sell for less than $1,000 while the houses and structures will sell for more. She pointed out that if people are going to bid on a property, one would assume that have funds available to pay for it.
People interested in looking at the available properties and making a bid can go to the www.tax-sale.info website. A link to that site is also available through the county’s www.berriencounty.org website.
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