Should I take legal action? County Tax deed sale gone wrong!!!

Question

I contacted Bonneville County in Idaho to take a look at properties that the county took possession of due to unpaid taxes and tried to purchase those properties. They gave me a list of properties that no one made an offer on at the last tax deed sale. Made an offer on a piece of land then the county contacted people that owned land around it and accepted an offer from another party without giving me a chance to counter.

I feel like I should take legal action as I was not given an opportunity to counter. Also them contacting the surrounding property owners really seems like they did not want me to purchase this property.

Thoughts? (Email chain attached)

Peymon Hashimoto :Mon, Feb 8, 2021 at 12:58 PM
Hello Mark,
Attached is my form that Hilda provided me. I hope to hear from you soon.

Peymon Hashimoto :Mon, Feb 22, 2021 at 8:23 AM
Hello Mark,
I would like to make a offer of $500.00 for the parcel # RPA0580001004C

Bonneville County Treasurer/Tax Collector: Mon, Feb 22, 2021 at 9:40 AM
I will pass this on to the Board of County Commissioners. Note that this parcel has no access.

Peymon Hashimoto :Tue, Mar 9, 2021 at 2:42 PM
When should I expect a response?
Bonneville County Treasurer/Tax Collector:Tue, Mar 9, 2021 at 3:03 PM
Working on it. Should have something for you next week.

Peymon Hashimoto :Mon, Mar 22, 2021 at 11:42 AM
Just following up on this
Bonneville County Treasurer/Tax Collector:Mon, Mar 22, 2021 at 2:04 PM
I’ll get back with the commissioners.

Peymon Hashimoto :Tue, Apr 6, 2021 at 10:37 AM
Any updates here?

Bonneville County Treasurer/Tax Collector:Tue, Apr 6, 2021 at 11:32 AM
Thank you for your patience. We have accepted a higher offer from the property owner whose backyard the subject
property is a part of.

Peymon Hashimoto :Tue, Apr 6, 2021 at 12:54 PM
Did you contact the property owner or did the property owner contact you?

Tue, Apr 6, 2021 at 1:11 PM
Our standard practice in all of these types of circumstances is to notify owners of property that is contiguous to the tax
deeded parcel of the situation. Sometimes they respond, sometimes they do not. In this instance he did come into the
office.

Peymon Hashimoto :Tue, Apr 6, 2021 at 1:39 PM
Could you explain "these types of circumstances"?
Why did I not have an opportunity to place a counter bid? I started the bid, they countered, why was I not given the
opportunity to counter back?

Bonneville County Treasurer/Tax Collector:Tue, Apr 6, 2021 at 2:07 PM
“These circumstances” apply to those times when the county takes tax deed to a property that has no, or little value
except as it would be associated with a parcel contiguous to it. Initially the county must offer it in a public setting, which
this property was, being included in an auction; however we received no bids. After a parcel has been offered publicly but
was not sold the county commissioners are at liberty to sell the property privately as they deem appropriate, precluding a
bidding process. Just so you know, the buyers were not made aware of your bid amount. I hope that this answers your
question.

Peymon Hashimoto :Tue, Apr 6, 2021 at 4:23 PM
This does answer my question but I am shocked. Why would anyone want to purchase a deed from the country when, as
you put it, "the county commissioners are at liberty to sell the property privately as they deem appropriate, precluding a
bidding process". I was not given a fair chance to bid on this property. I placed a bid, then you contacted another party
and sold it to them without giving me a chance to counter their bid.

I will certainly not be placing any more bids with your county and I am guessing when word of this "policy" gets out no
other investor will want to place bids.

Jay Hinrichs · Answer

i just read the e mail chain that's a classic.. for sure they are going to sell it to the contiguous owners as a FIRST priority its their constituents.. and since this was 500.o0 its not like you have any damages..  the contiguous property owner is the only one that benefits unless your going to try to sell it to someone and not disclose its landlocked  ALA the stuff you see on bid 4 assets were the sellers are just giving quit claims and no title insurance..   There are literally millions of bare pieces of ground in the west you can target  NEXT  don't let it get to you. And for sure don't make enemies with the county.

Here is some unsolicted advice from someone ( ME) who grew up in the land business and whose family made a living for 30 years buying and selling tax sale lands in CA Literally buying thousands of these parcels over the years. .  you want to befriend those folks not alienate them.

My response would have been:

Thank you for the follow up I certainly understand the benefit of a contiguous property owner that has legal access being the more appropriate candidate for the subject parcel. I would like to continue to look for surplus properties in your county and will look forward to communicating with you on the next one.. Also if you do come across something you thing I would like please feel free to send me an e mail.. I agree that was the right thing to do for your local community.   sincerely Me.

Also keep in mind counties don't really like to sell landlocked parcels because of the fraudsters out there that buy these and then sell them to unwitting or unknowing newbies who don't under stand they are buying a worthless property that ONLY has value to a neighbor.. the county fields those calls and they don't like it.. They don't like to see others lose their money..  Some of the counties we worked in CA will no longer sell tax defaulted un buildable properties.. just wont do it.

Peter Walther · Answer

An orphaned parcel probably has not been accessed in a manner that would create a basis for a prescriptive easement.  However, depending on the chain of title there may be a cause of action for an implied way of necessity and if not there is may be a basis for a claim for a statutory way.

Peymon Hashimoto · Answer

@Jay Hinrichs thanks for the reply. Still feels pretty unfair. I guess to your point they do not have to be fair.

Jay Hinrichs · Answer

nothing you can do  they are not obligated to counter and usually they want to serve their community..  I remember once we had a property in Oregon that we logged so I forgot about it. and we were just a few weeks from losing it to tax's  county tax collector hunted me down and actually called me and said hey your going to lose this sure you dont want to redeem.. I said thank you and drove a check down the next day.. They were protecting us I guess.

Darius Ogloza · Answer

If they sold you the landlocked parcel, they would have been complicit in creating a prescriptive easement across the contiguous owner's land to service your parcel.  The neighbor would not likely have been happy about that.

Lynnette E. · Answer

They actually saved you $500 plus future taxes.  Its landlocked.  Do you think the adjacent property owners are going to give you access?  And in many states, you can not 'demand' access.

Jay Hinrichs · Answer

PS  take legal action over a 500.00 purchase I mean really what would you hope to gain by that.. ??  can you explain what you think you would get out of that ?   spend 5k to buy a 500.00 worth less landlocked property?.. seems like a stretch to me.

Jay Hinrichs · Answer

not saying this is what this person was going to do .. however there are many  how should i say this less than honorable people that know exactly what they are doing.. they buy this stuff for next to nothing put it out there to very unsophisticated investors and many time foreigners and just quit claim them take the cash and could care less if the people they sold it to cant do anything with it.   its a thing just check out bid 4 assets you will see alot of this activity.

Wayne Brooks · Answer

They are not required to keep you in the bidding process....obviously $500 wasn’t a windfall for them. You tried, it didn’t work, move on.

Should I take legal action? County Tax deed sale gone wrong!!!

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