In an ongoing effort to turn around its stock of vacant, tax delinquent properties, the city of Philadelphia will send some 1,400 liens to auction.
"Philadelphia officials are planning to go ahead Wednesday with an auction of city tax liens despite the concerns of housing advocates," according to an article by Bill Hangley. In question are about 1,400 liens on vacant properties. The city is hoping to raise millions through the sale of the liens, but critics say that plan will just move the properties intoa enw type of limbo.
To explain in more detail about the auction, Hangley writes: "A tax lien auction is basically a debt sale….When you buy a tax lien, you win the right to collect that debt -- or seize the property through foreclosure."
In theory the auction should move the properties back onto the market. According to Beth McConnell, head of the Philadelphia Association of Community Development Corporations, the reality is far from profitable, because "buyers have just as much trouble collecting debts as the city, and foreclosure proceedings can take years to resolve."
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