Bidders Pay Taxes For 7 Delinquent Properties At EG Tax Sale

Every year, the Town of East Greenwich sells the taxes owed on properties at least six months behind on their tax bills. The tax sale, as it's known, took place last Thursday at Town Hall.

The seats in Council Chambers were filled by 1 p.m., starting time for the sale, by investors from around the state. Many of those present had already been to sales in other municalities that day. In Pawtucket, for instance, taxes on 150 properties were up for sale. In East Greenwich, however, the number was considerably smaller, just 7 properties were dilinquent on either their property taxes or their sewer assessment. That was down from 17 just 24 hours earlier. 

The actual sale is a curious thing, with town Finance Director Kathy Raposa reading out the owner's name, the plat and lot numbers and then the assessment. The bidders hung on her every word because they could only bid once Raposa finished reading out the assessment. (See the video, attached.) 

Then hands would fly into air – a literal whosh, as 20 or more hands shot up. It was then up to Pam Aveyard, assistant to the town manager, to decide just whose hand went up first. That person would then be responsible for the assessment, which ranged from as low as about $1,000 to just over $4,000.

By doing that, the bidder then immediately made 10 percent interest of whatever the assessment was. In other words, on an assessment of $2,000, the bidder would be entitled to a payment of $2,200 if the property owner paid his or her back taxes in the next six months. After six months, the bidder would get a 1 percent interest increase a month up to 12 months. After that, if the taxes were still unpaid, the bidder could then foreclose on the property in court, conceivably picking up a piece of real estate for the price of its back taxes.

By the end of the tax sale, less than 30 minutes after it began, the town had recouped $20,854.82.