Delinquent Notice, Liening, and Deeding

With February upon us, it’s time to start thinking about the processes for the Notice of Arrearage (Delinquent Notice), Liening, and Deeding. Specifically, the requirements and dates for each of the steps needed in order to meet the required RSA deadlines.

Before you begin one of the processes listed below, you will need to obtain the latest version of the Tax Lien Procedure Schedule of Fees and Costs from the NH Tax Collector’s website. Several of the processes require fees to be added to an owner’s unpaid invoice and you will need to know the breakdown of each fee. Another helpful document for deciding when to do each process is the Outline of Duties published by the NH Tax Collectors’ Association.

Also, before creating any notices, you should make sure to update the owners in Tax Collect with the current information from Assessing. To do so, go to Utilities | Get Assessing Owners | Only For Owners That Have Been Edited by Assessing. Remember, once you have created your lien or deed notice you do not want to update owners again until after you have executed your liens or deeded the parcels. With this in mind, it is not a good idea to send your lien or deed notices at the same time you will be doing your first issue billing, as you will need to send out your property bills with up-to-date owner information.

So, below is a brief description of each process and the RSAs that govern that process. For details on how to complete the steps in Avitar Tax Collect, select the link provided in each of the processes.

Notice of Arrearage (RSA 76:11-b): In Avitar Tax Collect, this is called the Delinquent Tax Notice and by law, must be mailed within 90 days of the final bill due date. This notice is sent by regular mail and should include all unpaid receivables (yield, current use, gravel, timber, property, liens, water, sewer, betterment). For more information on how to create the Delinquent Notices click here.

Lien Notice (RSA 80:59 and 80:60): A lien notice must be sent certified mail to every owner who has not paid their prior year taxes in full. The notice must be sent to the current owner of record at least 30 days prior to the execution of the lien. Keep in mind that the lien must be executed by September 30th each year, so the last day to mail a lien notice would be August 30. For more information on how to create the Lien Notices click here.

Execute Lien (RSA 80:61, 80:63, 80:64): Prior to the execution of the lien, a lien notice is sent to the owner and the notice must state the date by which the owner has to pay his outstanding invoices before a lien is executed. On that day, or the next day, you will execute the liens for taxpayers who did not pay their outstanding invoices in full. Before you execute the lien, make sure you have posted all payments and you have finalized your deposit for the day. For more information on how to Execute a Lien click here.

Note, once you have executed your lien, you will need to send a report of each liened account to your mortgagee researcher. They will search the registry to find any mortgagees, which will need to be notified of the lien you have placed on the property. To print the report, go to Utilities | Title Search. Using the Select Warrant dropdown menu, select the lien warrant you just created (e.g. 2012L01-Lien). Select the Lien Mortgagee Search radio button and Print.

Deed Notice (RSA 80:77 and 80:77-a): At least 30 days prior to the execution of a deed, a notice must be sent to the property owner and any mortgagee informing them of the impending tax deed. The deed notice has to be sent to each owner and any mortgagee, which means a search of the registry of deeds must be done before the notices can be mailed. So, about a month before you are ready to print your deed notices, you should send a report to your researcher listing the owners coming up for deeding. To print the report go to Utilities | Title Search. Using the Select Warrant dropdown menu, select the warrant you will be deeding (e.g. 2010L01-Lien if your lien was created in 2011). Select the Deed Mortgagee Search radio button, enter the Deed Date, and select Print. For more information on how to create the Deed Notices click here.

Execute Deed (RSA 80:76): RSA 80:76 states, “The collector, after 2 years from the execution of the real estate lien, shall execute to the lienholder a deed of the land subject to the real estate tax lien and not redeemed.” There are only two reasons a collector should not deed a property: the owner has filed bankruptcy or the selectmen decide they do not want the property. If the selectmen decide not to take the deed on a property, a deed waiver form should be filled out and signed by the selectmen. A sample of the deed waiver form can be found on the NH Tax Collector’s website. For more information on how to Execute a Deed click here.

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