T
he number of Luzerne County property owners behind in their real estate taxes has increased compared to last year, using the upcoming delinquent tax auction as a benchmark. Despite this increase, the current delinquency figure is not the highest in recent years. Properties eligible for the annual September first-stage “upset” auction must owe taxes dating back two years, which would be 2022 for this year’s Sept. 26 sale.

    Approximately 3,274 parcels were eligible when county tax claim operator Elite Revenue Solutions LLC started compiling the current upset sale list in June, according to recent reports. This is higher than last year’s upset auction, which started with 2,956 eligible properties.

    While the current delinquency statistic is higher than the prior year’s, there were more properties initially eligible for the auction in both 2021 and 2020. The initial eligibility statistics from upset sale preparations in recent years are as follows:

    • 2022: 3,040 parcels

    • 2021: 3,400 parcels

    • 2020: 3,824 parcels

    County officials attribute tax delinquency increases and decreases to economic conditions. The initial figures provide an annual snapshot reading, but the number of properties that actually make it to auction drastically decreases.

    To avoid a sale, owners can pay the portion of taxes dating back two or more years, which is currently everything owed through 2022. Other options include entering into a payment plan or convincing a judge that temporary removal from the auction is warranted.

    Payment plans require at least 25% of the total owed in an up-front payment and the rest paid within a year, according to state law. Owners are not eligible for payment plans if they defaulted on a prior one within the last three years by missing two consecutive payments, the law says.

    Of the 3,274 parcels deemed eligible for this year’s auction during June preparations, nearly half have paid or satisfied one of the other conditions to obtain removal from the sale, Elite Revenue said. This leaves approximately 1,692 properties still in the sale, and the number will continue shrinking as the auction nears based on past history.

    For example, last year’s auction process started with 2,956 parcels and ended up with 389 properties announced for sale on auction day. A few owners paid the morning of the sale or filed for bankruptcy at the last minute.

    Elite Revenue posts updated lists of the properties still eligible for auction on its site at luzernecountytaxclaim.com.

    Bidding at upset auctions sets minimum bids at the amount of all real estate taxes owed along with any overdue municipal, state or federal liens. Real estate transfer tax is also included in the minimum bid.

    Bidders must accept responsibility for any outstanding mortgages and non-municipal liens attached to their purchases. Elite Revenue representative Sean Shamany emphasized this point, saying prospective buyers must perform their own research to determine if they would be on the hook for mortgages or non-municipal liens.

    “Mortgages and other liens are not added into the upset price, but that potential is still hanging out there,” Shamany said. “That’s why bidders have to do their due diligence.”

    As with all sales, Shamany reminds novice bidders to start at the most basic level by ensuring they know what they may be buying. Some incorrectly rely only on assessment record “situs addresses,” which are intended as a general geographic reference point and may not literally correlate to a structure, officials have said. Many situs addresses date back decades, and several parcels may be lumped under the same situs address.

    Instead, prospective buyers should match the unique identifier for each parcel — known as the property identification number, or PIN — to the boundary lines in the county’s real estate maps. These PINS are included in the auction list.

    The county GIS/Mapping department offers a free online map to search all PINs at luzernecounty.org. This tool allows prospective buyers to determine the positioning of the parcel and whether those of interest are landlocked or contain structures.

    Yards, garages, driveways or other parking areas often are on separate parcels, even though they may only have value to an adjacent structure. Property owners have no requirement to consolidate all their adjoining parcels into a single one through a reverse subdivision, which is why multiple parcels are often taxed individually.

    Other lots may be non-buildable based on setbacks and other zoning ordinance requirements.

    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.

    Properties that don’t sell in the upset will advance to a “free-and-clear “judicial” sale in August 2025, when delinquent taxes and liens are deducted from the minimum bid.

    Due to 2021 state legislation, prospective bidders must register by 4 p.m. Sept. 13. Aimed at cracking down on irresponsible bidders who contribute to blight, the state’s Real Estate Tax Law amendment requires county tax claim offices to cut off bid registration earlier so municipalities have time to research whether prospective buyers have code violations or landlord license revocations.

    Bidders also must submit more information to register, including details about limited liability corporations. Registration forms are posted on the tax claim site.

    The Sept. 26 auction starts at 10 a.m. in the King’s College Scandlon Physical Education Center, 150 N. Main St., Wilkes-Barre.