Mahoning County had its first conventional tax lien certificate sale in November 2000, under the direction of Treasurer John B. Reardon. A Florida company, Heartwood 88 (a division of Bank Atlantic), bought liens on 293 delinquent properties for more than $1.2 million.

At that time, Ohio law permitted the 12 most populated counties to hold such sales on delinquent parcels. The treasurer had to sell the county’s liens for the full amount of back taxes plus administrative fees. The buyer made money by collecting the delinquent tax amount plus 18 percent interest. If the property owner didn’t settle with the lien buyer within one year, the lien holder had the legal right to foreclose.

Unfortunately, thousands of Mahoning County’s delinquent parcels weren’t good candidates for conventional tax lien certificate sales. The back taxes owed were far greater than the value of these vacant, abandoned properties.

Reardon and his staff successfully lobbied the state legislature to change the law so that a treasurer could sell liens to the highest bidder, even if that bid is less than the full amount of delinquent taxes. The law was changed in 2001. It still applies only to Ohio’s top 12 counties in terms of population.

Mahoning County’s first negotiated tax lien sale was in April 2004. Since then, four additional negotiated lien sales have taken place. To date, Mahoning County has negotiated the sale of  approximately 93,000 tax liens for tens of millions of dollars.

Counties benefit from tax lien sales in a number of ways. Notices of such sales prompt many delinquent property owners to pay their back taxes in order to avoid liens on their parcels. In fact, Mahoning County has collected millions in tax dollars prior to these negotiated sales.

Once a lien sale takes place, the county receives its money quickly. Schools and local governments are among the beneficiaries of property tax collections.

Lien sales help counties to avoid costs associated with foreclosures.

Also, after negotiated tax liens are sold, the county can legally wipe out any unpaid property tax balances on its books. That improves the county’s bond rating.

By buying tax liens, persons gain leverage to acquire ownership of property, either by obtaining quit claim deeds from original owners by filing foreclosure action in court. There may be a waiting period before lien holders may negotiate with property owners. Lien Forward Ohio’s staff can advise lien holders on these and other matters.

History: Lien Forward Ohio

Former Mahoning County Treasurer John B. Reardon created the Treasurer’s Land Reutilization Program to find ways to return more than 14,000 vacant, abandoned, tax delinquent properties to productive use.

In July 2002, Reardon assembled a Vacant Land Task Force, comprised of private and public sector representatives from Youngstown, Struthers, Campbell and the county. The task force identified problems but lacked power to implement solutions.

Reardon then created the Treasurer's Land Reutilization Program to find ways to return approximately 13,000 vacant, abandoned, tax delinquent properties to productive use. The Treasurer's Office, however, couldn't hire lawyers to work for citizens nor accept donations to help people afford the cost of property transfers. That's why Lien Forward Ohio Regional Council of Governments was founded in October 2005 as a partnership between the City of Youngstown and Mahoning County.

Lisa Antonini, current Mahoning County Treasurer, also supports economic development through Lien Forward Ohio.