A temporary restraining order was issued at 5 p.m. April 17, against the town of Bremen, prohibiting the town from taking any action in the disposal of a property taken by the town for delinquent taxes.
At their March 21 meeting, the board of selectmen set April 18 as the date to open bids on a sealed-bid auction for a residence at 83 Turner Rd., after the owner failed to pay property taxes for three years.
The town’s original lien was filed June 12, 2011. The property owner had 18 months to pay the taxes owed, before the town was entitled to take possession.
The assessed value of the property is $82,000. A tour the house and land was held April 13.
According to board chairman Wendy Pieh, the order was sought by an attorney acting on behalf of an entity named the Christiana Trust.
“According to the court, we cannot open bids tonight,” Pieh said April 18, following an executive session between the board and town attorney Jonathan Hull.
Five sealed bids were submitted to the town by the 5 p.m. deadline.
According to Hull, mortgage holder Citi Financial alleged they were not properly notified by the town of its intent to foreclose on the property, prior to proceeding with the auction.
“They subsequently assigned it to Christiana Trust,” he said. Hull said the trust is managed by a bank in Florida. “Their claim is that the foreclosure tax lien was invalid because Citi Financial did not receive proper statutory notice.”
Hull said a notice sent by mail to Citi’s address of record was returned to Bremen as undeliverable.
“The are required to receive notice 30 days before an automatic lien of foreclosure,” Hull said Citi Financial’s attorney was notified in November 2012 and again last January. “They claim notice to their attorney is not notice to them,” Hull said. “That is what this is going to turn on.”
Hull said he notified Christiana Trust of the situation in mid-April, approximately a week before bids were due to be opened.
He said the assignment of the mortgage at the end of March was recorded at the Lincoln County Register of Deeds “a couple of weeks ago.”
“Christiana Trust was not a lien holder at the time we foreclosed,” Hull said. He said all notices sent by the town in the matter were sent return receipt requested and all email messages and replies were time dated.
“We have a hearing tentatively set for next week on the temporary restraining order,” he said.
“The town’s position is that the property belongs to the town,” Hull said.
