Cincinnati Could Sell Property Liens to Collectors

Cincinnati is considering selling property tax liens to a private collector or collectors as delinquencies on the bills continue to rise.

Robert A. Goering, treasurer of Hamilton County where Cincinnati is located, tells insideARM.com that homeowners are late on $71 million in 2006 property tax bills. That is 6.5 percent of all property tax bills, twice as many late bills as in 2002.

Goering says he will decide by the first quarter of 2008 whether to allow bids for the liens.

“The idea is to generate funds quickly through a tax lien sale. And the threat of a sale increases payment on delinquent accounts,” said Goering.

This would be the first time that Hamilton County has outsourced its collections on liens. “With a low percentage of delinquencies there was no need to do it before,” said Goering.

Ohio had the fifth highest foreclosure rate in the country in August with nearly 18,000 foreclosures, or one for every 281 households, according to RealtyTrak, a publisher of a comprehensive list of national foreclosure data. Ohio’s foreclosure rate has jumped more than 138 percent since August 2006.

Ohio’s 11 largest counties are allowed to sell liens on their delinquent properties. Cuyahoga, Franklin and Summit counties have previously sold their liens to collectors, said Goering.   

Hamilton Co. had an estimated 822,596 residents in 2006 and 382,982 housing units in 2005, according to the U.S. Census. In 2000, the home ownership rate was 59.9 percent and the median home value was $111,400.