Foreclosure and distraint
What is Tax Foreclosure?
When real property taxes become three (3) full years delinquent, the Island County Treasurer begins foreclosure action. A Certificate of Delinquency is filed with the Superior Court listing the property accounts to be included in the foreclosure action. All parties with a recorded legal interest are notified and served by certified or registered mail. A Notice of Summons is also published in the local newspapers, as required by law. (RCW 84.64.050)
What is Personal Property Distraint?
When personal property taxes are not paid before they become delinquent and remain unpaid, per RCW 84.56 the Treasurer is to distrain and sell said personal property, to include mobile homes, manufactured homes, park model trailers and business equipment, among other things. An auction is usually set following one year after the original due date.
What is the redemption period on parcels subject to foreclosure or distraint?
The owner of the parcels or other parties with a recorded legal interest may redeem the property up to 4:30 p.m. (closing) on the day before the sale. (RCW 84.64.070)
There is no right of redemption by owners or lien-holders on the day of the sale.
What are surplus funds/proceeds?
If a parcel is sold at a foreclosure sale for an amount greater than the minimum bid, the surplus monies (excess proceeds) can be claimed by the previous recorded title owner provided that all registered liens having a legal right to claim the money have been satisfied. If a valid claim has not been received after a three year period, the surplus is deposited in county funds. (RCW 84.64.080).
The amount of fees or compensation provided to third parties assisting in locating or purporting to locate any property or surplus funds is limited to 5% of the value returned to the rightful owner under RCW 63.29.350. Any person violating this section is guilty of a misdemeanor and shall be fined not less than the amount of the fee or charge he or she has sought or received or contracted for, and not more than 10 times such amount, or imprisoned for not more than 30 days, or both.