Outside firm outlines tax-foreclosure process, timelines and fees for Crawford County

Michelle Grenwall, an attorney with the Wichita law firm Klenda Osterman, described to the Crawford County Commission on Wednesday how her firm conducts tax-foreclosure work for counties across Kansas and what hiring outside counsel would mean for Crawford County.

“I’m with the law firm of Klenda Osterman in Wichita, Kansas. I’m here to speak on tax foreclosure procedure — proceedings and the procedures that are involved in initiating a tax foreclosure sale on behalf of the county,” Grenwall said as she introduced herself.

Grenwall said her office performs the full range of tasks for counties that retain it: identifying eligible parcels from a treasurer’s list, preparing an initial “skeleton petition,” pursuing service and title searches, tracking redemptions, coordinating publication, running tax sales, and preparing final deeds and court filings. She said the firm’s work is intended to be cost-neutral to the county by adding attorney, court and title fees to each parcel as part of the statutory redemption costs.

Why it matters: County officials said they are facing a multi-year backlog of delinquent tax accounts and that the work is highly time-consuming for county staff. Hiring outside counsel is a way to shift procedural workload and legal risk while keeping tax-collection activity moving.

Key details from Grenwall’s presentation: - Fee structure and who pays: The firm sets an engagement fee based on the number and quality of parcels a treasurer provides; that fee is added to each parcel as a redemption cost and collected from taxpayers seeking to redeem and stop a foreclosure sale. Grenwall described an additional $100 court-cost fee and a final title fee that also are added to the parcel as the case proceeds. - Timelines: Grenwall said a single tax-foreclosure case can be completed in roughly six to 12 months once title work is available, but she cautioned that title-company turnarounds vary; some title searches arrive in a month or two, others can take nine months to a year. She explained the common Kansas timing: treasurers bid in delinquent parcels around Sept. 1, and, depending on statutory eligibility, properties become eligible for foreclosure selection in subsequent years. As an example, she said 2020 delinquencies are now being processed for potential 2024–25 actions. - Redemption window: Grenwall said owners can redeem up to the day before sale, and that many redemptions occur shortly after a lawsuit is filed. “We will take that money,” she said, referring to last-minute redemptions before an auction. - Title and notification work: The firm works with local title companies to obtain title reports and adds a final redemption-related fee to cover those expenses. When defendants cannot be located, Grenwall said the firm serves by publication in the county newspaper per statute and follows statutory default periods before pursuing judgments and sales. - Case scale: Grenwall said Klenda Osterman currently handles tax-foreclosure work for more than 30 counties, with some counties sending hundreds of parcels in a single cycle. She discussed examples including Sedgwick County, where hundreds of parcels are processed at once, and other rural counties with smaller parcel counts.

Commissioners asked about flexibility during sales and whether the county could still intercede to allow sales to be reserved for land banks or city requests; Grenwall said counties retain discretion and the firm can work with county staff to accommodate local priorities. She also described how the firm can absorb ongoing cases handled by other counsel by overlapping filings so there is no interruption in foreclosure filings.

Grenwall offered to send a sample final accounting and a standard packet she gives treasurers explaining how to select parcels and what information the firm needs to start work. Commissioners said they would discuss the option with the treasurer and follow up.

Grenwall closed by reiterating that the firm’s aim is to secure tax redemptions and collect revenue while selling as few properties as possible. “We’re not in the business of selling properties,” she said, “we want the redemptions done and we want the county taxes collected.”

Ending: Commissioners asked staff to follow up with the treasurer and county counselor on whether to engage outside counsel for some or all of Crawford County’s delinquent cases, and Grenwall said she would supply sample accounting and process documents by email.