[bouldercouncilhotline] Hotline: Tax lien sales on mobile homes in Boulder County

[cmosupport at bouldercolorado.gov]

Sender: Morzel, Lisa

Tax lien sales on mobile homes in Boulder County

Council,
Earlier this week, a very serious issue regarding mobile homes in Boulder and Boulder County was brought to Mary Young and my attention.  The issue is in regard to recent developments on tax lien sales on mobile homes that have been acquired by speculators. All of this is done legally.

Currently, four tax lien sales have occurred in Boulder County: one in Louisville with a family of 8, one in Lafayette, and two in the city of Boulder (Vista Village-Robert McHugh; and one in Boulder Meadows).  Council has recently received many emails about Mr. McHugh and his home and his current medical condition.

There appears to be one dominant investor engaging in this practice, although others also are engaged in this practice.   She is buying many of these liens under CRS 39-10-101 tax law for mobile homes for somewhere under $300 and is capable of reselling these homes for at least $26,000.  As I stated above, this practice of purchasing liens is legal.  This practice, however, puts the owner of the mobile home in a dire situation with few, if any, alternatives.

These four tax lien sales are just the beginning of what may be a new trend.  Purchase of tax lien sales of foreclosed fixed foundation homes has been occurring for years. Two of the four former mobile home owners have been referred to Colorado Legal Services for assistance.  The third will not qualify for their services.  No contact has occurred with the fourth owner.
While the outcome for these four is being examined, an additional two liens are available now that could be purchased by the city to prevent this speculative trend and displacing more families. Sixty-four (64) liens for mobile homes in Boulder County were sold in the 2015 tax lien sale.  As of last week, twenty-eight (28) of these 64 properties may be subject to deed transfer in December (if the owners do not redeem).
Mary and I want to bring this to your attention and let you know we are working with staff at the city and county level to immediately address this critical issue.  We thought you would want to know.  We will be meeting with State Senator Kefalas in early March and will keep him and our state representatives know of this situation and how it evolves.  Please call Mary or me if you have any questions regarding this.

Lisa Morzel and Mary Young
Lisa Morzel
Member, Boulder City Council
303-815-6723