County counselor explains tax-sale process, redemption period and court steps

Pat Henderson, Atchison County counselor, gave a detailed explanation Tuesday of the county's tax-sale process, including timelines, the county treasurer's role as the auctioneer and bidder, and how properties move into judicial foreclosure if taxes remain unpaid.

Henderson told the commission that taxes become delinquent if not paid by the statutory second-half deadline of May 10 and that the treasurer compiles delinquent parcels and publishes notice before a September sale. "The county treasurer is the auctioneer, if you will, and also is the bidder on behalf of the county," Henderson said, describing Kansas's system in which third-party bidders generally are not allowed at that auction.

He explained redemption rights and timing: after the treasurer's sale in September, property owners typically have a three-year redemption period to pay delinquent taxes, interest, assessments and fees and thereby stop the matter from moving to judicial foreclosure. Henderson said that non-homestead parcels can have a shorter, two-year period under statute but noted practical traceback problems and the county's usual practice of allowing three years "to give the benefit of the doubt to the landowner."

Henderson reviewed the administrative steps that precede a judicial foreclosure petition: the treasurer's list, abstracting to locate potential claimants, filing a petition with the district court, and efforts to provide notice to claimants by personal service or publication if owners cannot be located. He said the county recently completed a sale and has filed a motion with the district court to confirm that sale; a court hearing to confirm the process is scheduled for June 9.

Several practical clarifications followed. Henderson said the publication and advertising costs are part of the process, and that the initial technical bid for recording costs starts at $38 (the county's recording fee for a two-page deed). He described small operational issues the county staff checks for when preparing lists, such as bankruptcy filings, parcels that appear twice in the system, very small tax parcels with only a few dollars in yearly taxes, and state- or city-owned parcels that in some cases cannot be foreclosed. "We have 1 parcel of property that's owned by a city of the third class that owes taxes for an assessment by that same city against its own property," Henderson said; he described those as examples where inclusion in a sale is unlikely because of statutory limits.

Henderson summarized protections and post-sale remedies: after judicial confirmation, the sheriff signs deeds that are recorded, and proceeds are used first to pay court costs, then the delinquent taxes and then distributed to taxing entities. He warned that unlike many mortgage foreclosures, there is no post-sale redemption period: once the sale is confirmed and a deed is recorded, the purchaser becomes the owner. He also noted that a landowner aggrieved by a confirmed sale has one year to file to set aside the sale in court, a rarely used remedy.

The commissioners asked clarifying questions during the presentation; Henderson and county staff said they were narrowing the candidate list for the next petition, addressing abstracting and title issues, and planned to return with the refined list when ready.

Ending: Henderson said abstracting results should be available in the next two weeks and that the county is still holding proceeds from the most recent sale pending the court's confirmation.