Town Places Liens to Collect Over $1M in Taxes, Foreclosure Notices Issued

This time each year, Amy Pectol completes the process of cleaning up the town's books—and that includes putting local delinquent taxpayers on notice.

Pectol, the town's tax receiver for the past six years, this week placed 79 liens on local properties for unpaid 2011 taxes totaling $1,029,362.52.

The liens range from $33.86 to $92,902.31.

Pectol said the number of liens were down slightly from 2010, but the dollar amount is slightly higher given the higher school, county and town tax levies this year.

Placing a lien starts the foreclosure period during which time homeowners have up to three years to pay the taxes owed. Historically, Pectol said, foreclosures are rare in Bedford because most people end up paying their back taxes.

"For most people the value of their property is high enough so that, compared to the taxes owed, it doesn't make financial sense to let the town take the property," said Pectol.

The office is currently following up on foreclosure notices issued in 2009. Pectol said she doesn't automatically begin foreclosure proceedings as she does placing liens—which are required by law.

"The payback for the town has to be big enough to outweigh the legal costs of the proceedings," she said.

For example, last year, the town was owed taxes on a half-acre plot on Lily Pond Lane in Katonah totaling $400, which wouldn't warrant the foreclosure of tax liens process. When the town had the opportunity to collect $200,688 from a 15.9 acre property on McClain Street, it became cost-effective to chase the funds down.

In both cases, back taxes were paid by the required deadline.

The town recently begain offering an installment payment plan for taxpayers which requires 25 percent of the amount of the lien to start, with the remaining balance to be paid over two years. The rules are strict and include interest and  late fees.

"We've only had four takers in three years," Pectol said.