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County seeks renewed in rem foreclosure services under two‑year contract to accelerate tax collections
Summary
Forsyth County tax office presented a proposed two‑year contract for in rem foreclosure legal services, describing results from a pilot and recommending a new contract with an existing vendor; the item was scheduled for formal board action at the regular meeting.
Diana Perez of the Forsyth County Tax Office briefed commissioners on March 24 about a proposed two‑year contract to continue in rem foreclosure legal services intended to collect delinquent property taxes and address abandoned properties.
Perez said the county previously piloted a large‑scale in rem process beginning January 1, 2023, and that contractor Zacchaeus Legal Services (Mark D. Bardell, attorney) was the sole bidder on the advertised procurement. Perez described the legal framework, citing North Carolina General Statutes for mortgage‑style foreclosure (N.C. Gen. Stat. §105‑374) and in rem foreclosure (N.C. Gen. Stat. §105‑375), and explained that each method is appropriate for different title and ownership scenarios.
Under the new proposed contract, Perez said terms would run from January 1, 2025 through December 31, 2026 with a not‑to‑exceed schedule: $114,500 for fiscal year 2025 (partial year), $380,305 for fiscal year 2026, and $190,155 for the following partial fiscal year — total not to exceed $684,960. The county may exercise an option to renew for an additional two‑year term beginning January 1, 2027 with a 10% rate increase in that second renewal term. Perez said funding for the first portion of the contract is secured in the tax administration budget.
Perez summarized results from the pilot batches: of an initial set of 31 parcels placed in the in rem process, 29 were resolved by taxpayer payment or sale at auction; two sales required re‑listing after technical issues. She said roughly 10% of properties subjected to mortgage‑style foreclosures historically require an in rem procedure due to title or ownership complexities.
Commissioners asked about the sole bid and whether the county had interviewed the attorney; Perez said the vendor has worked with the county previously on mortgage‑style foreclosures and on the pilot project and that staff found the vendor responsive and experienced. The resolution to authorize the contract was placed on the regular meeting agenda for formal action.
