Luzerne County Courthouse
                                 File photo

Luzerne County Courthouse

File photo

Luzerne County’s recent tax auction may have set a record, surpassing $3 million in sales with realty transfer taxes factored in, the tax-claim overseer said.

Veteran bidder Glenn Keller, an investor based in Jim Thorpe, is responsible for a third of the proceeds in the Sept. 22 auction, paying $1.1 million to purchase 48 properties, according to a post-sale report.

In total, 176 parcels were sold for $3.34 million at the first-stage “upset sale” in which bidders must pay all delinquent real estate taxes and municipal liens and accept responsibility for any outstanding mortgages and nonmunicipal liens attached to their purchases, said Sean Shamany, of county tax-claim operator Elite Revenue Solutions.

Shamany believes this is the first time a county tax auction hit the $3 million threshold.

“We were very happy with the sale result and thrilled there was so much competitive bidding,” Shamany said.

County auctions have been steadily attracting more bidders in recent years due to increased public awareness about the opportunity and heightened interest in potential real estate bargains, officials have said.

Identified as bidder #7 at the sale, Keller said landing properties in tax auctions is thrilling but not usually a quick and easy way to make money.

“There’s a lot more to it than meets the eye. There’s a lot of work involved,” Keller said.

Keller and his team physically visit each prospective purchase site to get a feel for the neighborhood and condition of structures based on an exterior view. Many less experienced bidders research solely using online real estate platforms that may have dated or inaccurate information, he said.

Court records also must be searched to identify liens or estate issues that ultimately must be addressed by the successful bidder, Keller said.

“It’s a lot of research. You’ve got to do your job,” Keller said.

Sometimes all that work is for nothing because an appealing parcel can be removed from the sale list shortly before an auction if the owner obtains a court delay, files for bankruptcy, pays the delinquent taxes or gets on a repayment plan.

Keller said he researches numerous properties countywide so he has other options if some on his wish list are removed or not worthwhile because bidding shoots too high.

When a bid is accepted, litigation and negotiating with lien holders often are necessary to obtain a clear property title, he said. Sometimes he has to pay liens in full, and other times a reduced payout is accepted, he said.

He bought an undeveloped parcel years ago because the records indicated the mortgage had been paid, only to later discover there was still an outstanding claim that had to be resolved, he said. Another purchase was tied up with two Internal Revenue Service judgments.

Keller said he has one purchase in neighboring Monroe County that has been in litigation for 11 years.

While resale is usually the end goal, he sometimes rents out properties while working through litigation.

This time and money spent on research, the purchase and obtaining a clear title is separate from the investment in cleaning out and renovating properties, he said.

He’s encountered structures packed with debris from hoarders and requiring more work than anticipated due to neglect.

Keller said he’s been through highs and lows in his more than three decades of tax sale purchasing but does not regret his career choice.

“It’s what we do. It makes life interesting,” Keller said.

His latest 48 acquisitions are in 22 municipalities — Duryea, Edwardsville, Exeter, Hazleton, Nanticoke, Plymouth, West Hazleton, Wilkes-Barre and the townships of Black Creek, Butler, Conyngham, Dallas, Fairmount, Franklin, Hanover, Hazle, Hunlock, Huntington, Newport, Pittston, Plymouth and Slocum.

Under a state law approved last year, all municipalities in the county receive advance information on prospective bidders before each tax auction so the local governments can research whether they have code violations or landlord license revocations that could preclude them from purchasing properties.

Keller currently owns at least 16 properties in the county under his name, property records show.

This isn’t the first time he stood out at a sale. In the September 2012 upset auction, Keller purchased 54 properties in 26 municipalities for $458,520 through a company named Land Tycoon. Only one property in Butler Township is currently listed under the ownership of Land Tycoon, according to a search.

Next step

Shamany said 197 properties were not sold in the Sept. 22 auction.

Unsold properties advance to a final-stage, free-and-clear auction next year, when liens are forgiven.

A report of all properties, sold and unsold, is posted online at luzernecountytaxclaim.com.

The Sept. 22 auction was the county’s last back-tax sale of the year, Shamany said.

Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.