American Tax Funding

Last updated
American Tax Funding
Private company
IndustryMunicipal Tax Liens
PredecessorTransamerica Municipal Finance
Founded2000
Headquarters
Jupiter, Florida
,
United States
Key people
CEO, Matthew A. Marini; Vice President, Tadgh Macaulay
Productspurchaser and servicer of tax liens
Subsidiaries Reoco, LLC, ATFH Real Property, LLC
Website www.atfs.com

American Tax Funding (ATF) is a private company based in Jupiter, Florida that engages in the purchasing and servicing of delinquent municipal real estate tax lien sales. Originally formed in 1997 as Transamerica Municipal Finance (TMF), a division of Transamerica Corporation. [1] In August 2000 the founders completed a form of a management buyout of TMF, creating ATF. ATF currently buys and services real estate tax liens in over 14 states and has provided over $1 billion in relief to local governments. [2] Many ATF tax liens are secured by either Wells Fargo Foot Hill or the Harris Nesbitt Corporation. [3] The process of privatizing the municipal tax foreclosures process and outsourcing to out of state third party, for-profit, private companies has drawn criticism from housing advocates who argue that a for-profit tax foreclosure process leads to more foreclosures, displacement and vacancy. [4] The other argument is that third party purchases of tax liens enables local governments to pay for essential services such as salaries for teachers, health care, police officers and firefighters. To date, no study has shown that the sale of tax liens to third parties leads to any increase in foreclosure activity. In fact, the sale of liens to third party purchasers often extends redemption periods and allows flexible repayment agreements for delinquent tax payers. [5]

Jupiter, Florida Town in Florida, United States

Jupiter is the northernmost town in Palm Beach County, Florida, United States. According to a 2017 Census Bureau estimate, the town had a population of 64,976. It is 87 miles north of Miami, and the northernmost community in the Miami metropolitan area, home to 6,012,331 people in a 2015 Census Bureau estimate. Jupiter was rated as the 12th Best Beach Town in America by WalletHub in 2018, and as the 9th Happiest Seaside Town in America by Coastal Living in 2012.

The Transamerica Corporation is an American holding company for various life insurance companies and investment firms operating primarily in the United States, offering life and supplemental health insurance, investments, and retirement services. The company has major offices located in Baltimore, Maryland; Cedar Rapids, Iowa; Denver, Colorado; Exton, Pennsylvania; Harrison, New York; Johns Creek, Georgia; Little Rock, Arkansas; Plano, Texas; and St. Petersburg, Florida. Additional affiliated offices are located throughout the United States. In 1999, it became a subsidiary of Aegon, a European financial services company headquartered in The Hague, Netherlands.

Contents

ATF News & Controversies

Between 2006 and 2008, the City of Syracuse sold American Tax Funding ("ATF") their pool of delinquent City and County tax liens upon roughly 1,900 properties for $12.9 million. [6] Essentially, ATF paid the City of Syracuse $0.87 on the dollar, which was typically more than the City could collect upon these back taxes, and also assumed the liability of collecting and enforcing on these unpaid obligations, some of which were over a decade old. [6] Initially, City Officials were "elated" to receive $4.5 million for their portion of the liens, but in January 2008 the City of Syracuse refused to sell ATF any subsequent liens and in December 2008, the City sent notice of default to ATF, citing in part that ATF had allowed already vacant properties to further deteriorate and had also refused to pay about $79,000 in back taxes upon half a dozen properties it had recently come to own through tax lien foreclosure and were actively marketing to local investors. [6] In response to the City's notice of default, ATF filed notice of a $6.1 million lawsuit against the City of Syracuse claiming that the City breached their contract and asking City Officials to address a variety of complaints. [7] One such complaint alleged that the City of Syracuse Code Enforcement Department targeted properties that ATF had recently foreclosed for violations and demolition, which caused outrage for Syracuse home buyers who were hoping to rehab these properties but were ultimately caught in the crossfire. [6] The outcome of the legal proceedings between the City of Syracuse and ATF is still pending.

In Youngstown, Ohio, Pig Iron Press business owner alleged that ATF foreclosed upon his business without giving him recourse to challenge the action or offer repayment options. [8] According to public record, in 2010 ATF did file a foreclosure action on both the owner's Youngstown business address and his personal residence in Boardman, Ohio, due to back taxes not paid from 2007 to 2009. [8] Contrary to the published reports, ATF did indeed through its attorney offer a repayment plan to the owner, however, he did not believe that he was obligated to pay taxes and also filed bankruptcy, a claim which he later withdrew. [8] ATF has a history of offering repayment plans in Ohio.[ citation needed ]

In Louisville, Kentucky homeowners and housing advocates argue that third party lien purchasers can charge excessive fees. [4] According to public records ATF does not profit from any fees in fact all fees are charged in connection of the servicing or foreclosure of the liens as allowed by statute.[ citation needed ]

Louisville, Kentucky City in Kentucky

Louisville is the largest city in the Commonwealth of Kentucky and the 29th most-populous city in the United States. It is one of two cities in Kentucky designated as first-class, the other being Lexington, the state's second-largest city. Louisville is the historical seat and, since 2003, the nominal seat of Jefferson County, on the Indiana border.

Between 2004 and 2009, the City of Schenectady received $43 million from American Tax Funding for their unpaid back taxes. [9] However, in 2012, the City of Schenectady would not sell its liens to ATF and instead, initiated its own foreclosure action upon the 2010 and 2011 liens. In response, ATF sued the City of Schenectady as "the city's threatened foreclosure action would preclude ATF's foreclosures, would preclude ATF from collecting on the payment plans that it has in place with numerous property owners, and would also preclude ATF from purchasing subsequent tax liens pursuant to its right of first refusal under the contract." [9] The City of Schenectady then sued American Tax Funding for the right to continue its foreclosure action. [9] To complicate matters, in 2006 the City of Schenectady sold ATF multiple invalid tax liens filed inadvertently by the City on various non-for profits, such as a Hindu Temple and various churches. [10] The City admits that the liens were inappropriately assessed and sold but "doesn't want to pay the nonprofits' roughly $280,000 bill." [10] Litigation between the City and ATF is still pending, along with the settlement resolution of the non-for profit liens.

In a rather unusual case in Rochester, New York, ATF foreclosed upon a property with $39,000 in back taxes and years of code violations which were included in these property taxes. [11] As authorized by State of New York, [12] municipalities may treat code violation fines as part of unpaid base property taxes and subsequently sell these liens to third party investors, such as ATF. In this case, the owners defended themselves in court against the foreclosure and claimed they were "Moorish American Aboriginals, changed their last name...and argued that the house was within the Iroquois territory of the Moorish Empire," thus, they were tax exempt. [11] The defense was eventually dismissed by a judge, but the practice of including code violations in property tax has elicited protests from homeowners who have delinquent tax liens and code violations, along with community groups in Rochester, NY. [11] Alternatively, it may be argued that including unpaid code enforcement fines in property tax bills may be seen as an effort to preserve and enhance the value of City neighborhoods, and to protect the safety, health and welfare of its citizens. [13] According to the City Treasurer, "Rochester is perfectly happy in its relationship with ATF." [6]

Rochester, New York City in Western New York

Rochester is a city on the southern shore of Lake Ontario in western New York. With a population of 208,046, Rochester is the seat of Monroe County and the third most populous city in New York state, after New York City and Buffalo. The metropolitan area has a population of just over one million people. It is about 73 miles (117 km) east of Buffalo and 87 miles (140 km) west of Syracuse.

Related Research Articles

A lien is a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation. The owner of the property, who grants the lien, is referred to as the lienee and the person who has the benefit of the lien is referred to as the lienor or lien holder.

A mortgage is a security interest in real property held by a lender as a security for a debt, usually a loan of money. A mortgage in itself is not a debt, it is the lender's security for a debt. It is a transfer of an interest in land from the owner to the mortgage lender, on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower.

In the United States, a homeowner association is a private association often formed by a real estate developer for the purpose of marketing, managing, and selling homes and lots in a residential subdivision. Typically the developer will transfer control of the association to the homeowners after selling a predetermined number of lots. Generally any person who wants to buy a residence within the area of a homeowners association must become a member, and therefore must obey the governing documents including Articles of Incorporation, CC&Rs and By-Laws, which may limit the owner's choices. Most homeowner associations are incorporated, and are subject to state statutes that govern non-profit corporations and homeowner associations. State oversight of homeowner associations is minimal, and it varies from state to state. Some states, such as Florida and California, have a large body of HOA law. Other states, such as Massachusetts, have virtually no HOA law. Homeowners associations are commonly found in residential developments since the passage of the Davis–Stirling Common Interest Development Act in 1985.

Foreclosure legal process in which a lender attempts to recover the balance of a loan from a borrower

Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

Tax lien

A tax lien is a lien imposed by law upon a property to secure the payment of taxes. A tax lien may be imposed for delinquent taxes owed on real property or personal property, or as a result of failure to pay income taxes or other taxes.

A mechanic's lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property. The lien exists for both real property and personal property. In the realm of real property, it is called by various names, including, generically, construction lien. It is also called a materialman's lien or supplier's lien when referring to those supplying materials, a laborer's lien when referring to those supplying labor, and a design professional's lien when referring to architects or designers who contribute to a work of improvement. In the realm of personal property, it is also called an artisan's lien. The term "lien" comes from a French root, with a meaning similar to link; it is related to "liaison". Mechanic's liens on property in the United States date from the 18th century.

Foreclosure investment refers to the process of investing capital in the public sale of a mortgaged property following foreclosure of the loan secured by that property.

A second mortgage is a lien on a property which is subordinate to a more senior mortgage or loan. Called lien holders positioning, the second mortgage falls behind the first mortgage. This means second mortgages are riskier for lenders and thus generally come with a higher interest rate than first mortgages. This is because if the loan goes into default, the first mortgage gets paid off first before the second mortgage. Commercial loans can have multiple loans as long as the equity supports it.

Security interest legal concept

A security interest is a legal right granted by a debtor to a creditor over the debtor's property which enables the creditor to have recourse to the property if the debtor defaults in making payment or otherwise performing the secured obligations. One of the most common examples of a security interest is a mortgage: When person, by the action of an expressed conveyance, pledges by a promise to pay a certain sum of money, with certain conditions, on a said date or dates for a said period, that action on the page with wet ink applied on the part of the one wishing the exchange creates the original funds and negotiable Instrument. That action of pledging conveys a promise binding upon the mortgagee which creates a face value upon the Instrument of the amount of currency being asked for in exchange. It is therein in good faith offered to the Bank in exchange for local currency from the Bank to buy a house. The particular country's Bank Acts usually requires the Banks to deliver such fund bearing negotiable instruments to the Countries Main Bank such as is the case in Canada. This creates a security interest in the land the house sits on for the Bank and they file a caveat at land titles on the house as evidence of that security interest. If the mortgagee fails to pay defaulting in his promise to repay the exchange, the bank then applies to the court to for-close on your property to eventually sell the house for profit.

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In the United States, a mortgage note is a promissory note secured by a specified mortgage loan.

Tax sale

A tax sale is the forced sale of property by a governmental entity for unpaid taxes by the property's owner.

A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished.

The Home Equity Theft Prevention Act is a New York State law passed on July 26, 2006, to provide homeowners of residential property with information and disclosures in order to make informed decisions when approached by persons seeking a sale or transfer of the homeowner's property, particularly when homeowners are in default on their mortgage payments or the property is in foreclosure.

Loan modification is the systematic alteration of mortgage loan agreements that help those having problems making the payments by reducing interest rates, monthly payments or principal balances. Lending institutions could make one or more of these changes to relieve financial pressure on borrowers to prevent the condition of foreclosure. Loan modifications have been practiced in the United States since The 2008 Crash Of The Housing Market from Washington Mutual, Chase Home Finance, Chase, JP Morgan & Chase, other contributors like MER's. Crimes of Mortgage ad Real Estate Staff had long assisted nd finally the squeaky will could not continue as their deviant practices broke the state and crashed. Modification owners either ordered by The United States Department of Housing, The United States IRS or President Obamas letters from Note Holders came to those various departments asking for the Democratic process to help them keep their homes and protection them from explosion. Thus the birth of Modifications. It is yet to date for clarity how theses enforcements came into existence and except b whom, but t is certain that note holders form the Midwest reached out in the Democratic Process for assistance. FBI Mortgage Fraud Department came into existence. Modifications HMAP HARP were also birthed to help note holders get Justice through reduced mortgage by making terms legal. Modification of mortgage terms was introduced by IRS staff addressing the crisis called the HAMP TEAMS that went across the United States desiring the new products to assist homeowners that were victims of predatory lending practices, unethical staff, brokers, attorneys and lenders that contributed to the crash. Modification were a fix to the crash as litigation has ensued as the lenders reorganized and renamed the lending institutions and government agencies are to closely monitor them. Prior to modifications loan holders that experiences crisis would use Loan assumptions and Loan transfers to keep the note in the 1930s. During the Great Depression, loan transfers, loan assumption, and loan bail out programs took place at the state level in an effort to reduce levels of loan foreclosures while the Federal Bureau of Investigation, Federal Trade Commission, Comptroller, the United States Government and State Government responded to lending institution violations of law in these arenas by setting public court records that are legal precedence of such illegal actions. The legal precedents and reporting agencies were created to address the violations of laws to consumers while the Modifications were created to assist the consumers that are victims of predatory lending practices. During the so-called "Great Recession" of the early 21st century, loan modification became a matter of national policy, with various actions taken to alter mortgage loan terms to prevent further economic destabilization. Due to absorbent personal profits nothing has been done to educate Homeowners or Creditors that this money from equity, escrow is truly theirs the Loan Note Holder and it is their monetary rights as the real prize and reason for the Housing Crash was the profit n obtaining the mortgage holders Escrow. The Escrow and Equity that is accursed form the Note Holders payments various staff through the United States claimed as recorded and cashed by all staff in real-estate from local residential Tax Assessing Staff, Real Estate Staff, Ordinance Staff, Police Staff, Brokers, attorneys, lending institutional staff but typically Attorneys who are also typically the owners or Rental properties that are trained through Bankruptcies'. that collect the Escrow that is rightfully the Homeowners but because most Homeowners are unaware of what money is due them and how they can loose their escrow. Most Creditors are unaware that as the note holder that the Note Holder are due an annual or semi annual equity check and again bank or other lending and or legal intuitions staff claim this monies instead. This money Note Holders were unaware of is the prize of real estate and the cause of the Real Estate Crash of 2008 where Lending Institutions provided mortgages to people years prior they know they would eventually loose with Loan holders purchasing Balloon Mortgages lending product that is designed to make fast money off the note holder whom is always typically unaware of their escrow, equity and that are further victimized by conferences and books on HOW TO MAKE MONEY IN REAL STATE - when in fact the money is the Note Holder. The key of the crash was not the House, but the loan product used and the interest and money that was accrued form the note holders that staff too immorally. The immoral and illegal actions of predatory lending station and their staff began with the inception of balloon mortgages although illegal activity has always existed in the arena, yet the crash created "Watch Dog" like HAMP TEAM, IRS, COMPTROLLER< Federal Trade Commission Consumer Protection Bureau, FBI, CIA, Local Police Department, ICE and other watch dog agencies came into existence to examine if houses were purchased through a processed check at Government Debited office as many obtained free homes illegally. Many were incarcerated for such illegal actions. Modifications fixed the Notes to proper lower interest, escrow, tax fees that staff typically raised for no reason. Many people from various arenas involved in reals estate have been incarcerated for these actions as well as other illegal actions like charging for a modification. Additionally Modifications were also made to address the falsifications such as inappropriate mortgage charges, filing of fraudulently deeds, reporting of and at times filing of fraudulent mortgages that were already paid off that were fraudulently continued by lenders staff and attorneys or brokers or anyone in the Real Estate Chain through the issues of real estate terms to continue to violate United States Laws, contract law and legal precedence where collusion was often done again to defraud and steal from the Note Holder was such a common practice that was evidence as to why the Mortgage Crash in 2008 occurred for the purpose of wining the prize of stealing form Homeowners and those that foreclosed was actually often purposefully for these monies note holders were unaware of to be obtained which was why Balloon mortgages and loans were given to the staff in the Real Estate Market with the hoper and the expectation that the loan holders would default as it offered opportunity to commit illegal transactions of obtaining the homeowners funds. While such scams were addressed through modifications in 2008. The Market relied heavily on Consumers ignorance to prosper, ignorance of real estate terms, ignorance on what they were to be charged properly for unethical financial gain and while staff in real estates lending arenas mingled terms to deceive y deliberate confusion consumers out of cash and homes while the USA Government provided Justice through President Obamas Inception and IRS Inception of Modifications which addressed these unethical profits in Reals Estate. It was in 2009 that HARP, HAMP and Modifications were introduced to stop the victimization of Note Holders. Taking on the Banks that ran USA Government was a great and dangerous undertaking that made America Great Again as Justice for Consumers reigned. Legal action taken against institutions that have such business practices can be viewed in State Code of Law and Federal Law on precedent cases that are available to the public. Finally, It had been unlawful to be charged by an attorney to modify as well as for banking staff to modify terms to increase a mortgage and or change lending product to a balloon in an concerted effort to make homeowner foreclose which is also illegal, computer fraud and not the governments intended purpose or definition of a modification. There are reputable companies that are trained to assist with foreclosure defense and home retention options. In addition, hud.gov offers a variety of non-profit agencies that offer assistance.

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PACE financing is a means of financing energy efficiency upgrades, disaster resiliency improvements, water conservation measures, or renewable energy installations of residential, commercial, and industrial property owners. Depending on state legislation, PACE financing can be used to finance building envelope energy efficiency improvements such as insulation and air sealing, cool roofs, water efficiency products, seismic retrofits, and hurricane preparedness measures. In some states, commercial PACE financing can also fund a portion of new construction projects, as long as the building owner agrees to build the new structure to exceed the local energy code.

Phil Ting American politician

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Florida is one of several states where the courts are required to be involved in every step of the foreclosure process. By 2012, it took three years to complete the process. In nonjudicial states, it takes an average of 100 days. As a result of the United States housing bubble, there is a large backlog of housing that is in the foreclosure process but unavailable to the market. This overhang has had a detrimental effect on the housing market.

The Trustee Sale Guarantee (TSG) refers to the title guarantee that is issued at the beginning of a foreclosure. TSG helps the foreclosing trustee and beneficiary through the delivery of the information required in ensuring compliance with the statutes of foreclosure stipulated by the state. Issuing the trustee sale guarantee is the start of foreclosure. It helps the lender and/or their private investment by providing information needed to ensure they follow federal law. The lender/private investor use a title company to issue the TSG, which give notice of the pending foreclosure. A Notice of Trustee's Sale notify homeowners and mortgage borrowers that their property will be sold at a trustee's sale on a specific date and at a specific location. The actual sale typically completes a non-judicial foreclosure. The highest bidder at a trustee's sale gets title to the property; if no one bids, the title to the property keeps with the foreclosing mortgage lender.

References

  1. ↑ "Company Overview of American Tax Funding, LLC". Bloomberg Business Week. Retrieved June 8, 2012.
  2. ↑ "About American Tax Funding". Archived from the original on June 21, 2012. Retrieved June 8, 2012.
  3. ↑ "ATF Secured Parties" . Retrieved June 8, 2012.
  4. 1 2 "Tax lien sales cloud Louisville's control over houses". Louisville Courier-Journal. Retrieved June 8, 2012.
  5. ↑ NTLA. "How Communities Benefit". NTLA. Retrieved 18 February 2014.
  6. 1 2 3 4 5 "Tax liens cause disputes for Syracuse, a Florida firm and long-distance homeowners". Syracuse Post-Standard. Retrieved February 18, 2014.
  7. ↑ "Syracuse city council OKs plan to create land bank to develop tax-delinquent properties". Syracuse Post-Standard. Retrieved February 18, 2014.
  8. 1 2 3 "American Tax Funding Forecloses on Pig Iron Press". The Business Journal. Archived from the original on February 25, 2014. Retrieved June 8, 2012.
  9. 1 2 3 Courthouse News (October 29, 2012). "American Tax Funding Sues NY City Over Tax Liens". Opposing Views. Retrieved 18 February 2014.
  10. 1 2 Stanforth, Lauren. "Settlement is goal of tax deal". Times Union. Retrieved 18 February 2014.
  11. 1 2 3 Sharp, Brian (2012-07-07). "City Eyes Buying Back Home in Complex Tale" (PDF). Rochester Democrat & Chronicle. Retrieved 18 February 2014.
  12. ↑ "A478-2013: Authorizes municipalities to treat unpaid fines for building code, property maintenance and nuisance violations as unpaid real property taxes". New York State Senate. Retrieved January 4, 2013.
  13. ↑ City of Rochester. "City of Rochester - Code Inspection and Enforcement" . Retrieved 18 February 2014.

See also

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