Two properties heading to 2015 public auction

Miriam Ostermann
Times Associate Editor

 

Following a lack of follow-through on tax arrears payments by two Strathmore properties, town council failed to see another option but provide approval for the conditions of sale for the two items to be auctioned in the 2015 Public Auction.
Owners of the properties located on 603 Willow Drive and 514 Hillview Gate entered into a tax arrear agreement to supply the homeowner greater opportunity to catch up on their arrears amounts – money that is owed and should’ve been paid earlier.
On Oct. 7 council was aware that the payments were not maintained and amounts escalated to $7,900 and $1,100.
“The property tax arrears agreement works well in most cases but not in all cases,” said Mel Tiede, director of corporate services for the town of Strathmore.
“In both cases some payments were made, however, additional taxes and penalties for the 2014-2015 year were added to the account balance. The arrears have not totally been paid.
The staff recommendation requested council to approve conditions that included redemption may be offered by payment of all arrears, that each parcel will be offered for sale, subject to a reserve bid and to the reservations and conditions contained in the existing certificate of title, and that after the public auction the town of Strathmore may become the owner of any property that is not sold at the public auction.
However, according to Dwight Stanford, the chief administrative officer for the Town of Strathmore, mortgage companies will usually intervene and pay the amount owed to protect their interests.
“We’re not worried at all, we’re sure both mortgage companies will send us a cheque before the sale,” said Stanford.
“In all the time I’ve been here in Strathmore, we’ve never had one go to a tax sale because as soon as we get ready to go to the tax sale, the mortgage company always paid it off. Otherwise they lose their money.”
Councillor Rocky Blokland questioned Tiede on the absence of the mortgage companies thus far. However, Tiede replied that most mortgage companies will only pay once council sets a sale date, and the lack of action should not be seen as a reflection on the companies’ level of interest in the situation.
According to Stanford, numerous attempts were made and letters sent to collect the payments over the last few years. He added that the town encounters a few situations similar to this each year.
“There’s been a lot of efforts made to collect these debts and at this point this is the town’s only option to go forward with this,” said Councillor Bob Sobol. “I don’t want to make it look like we’re a bunch of bad guys. We don’t have a choice in this matter. These are public funds that are owed and our director is doing what he must to get them collected.”
The 2015 public auction will be conducted on Dec. 14, 2015.